The Information Technology and Software industry is a global powerhouse today in India, and its impact on the country’s economic development is unparalleled. The Information Technology sector has contributed significantly to positioning India as a preferred investment destination for global investors. Further, it has created substantial job opportunities in India, as well as in the USA, Europe, and other parts of the world. Over the last decade, the industry has grown many folds in revenue terms, and its share of India’s GDP is estimated at around 7.8% in FY2024–25.
We, DART Analysts, based on data up to FY2022, had indicated that the Indian IT Services sector achieved a CAGR of 12.1%, with expectations of a continued 14.28% CAGR for the period 2023–2027. However, subsequent analysis using data up to FY2025 reveals a moderation in growth, with the overall industry CAGR settling at 9.1%, reflecting a maturing market and intensified global competition.
The performance trend suggests that while the Indian IT Services industry remains structurally robust, growth has transitioned from a phase of rapid double-digit expansion to one of consolidation and strategic refinement. Companies are increasingly focusing on global delivery standards, client-centric solutions, and strengthening governance and compliance, while leveraging advanced technologies—such as AI, cloud computing, cybersecurity, and automation—to enhance service efficiency and scalability. The sector has faced pressures from rising global competition, pricing pressures, and macroeconomic uncertainties, which have collectively moderated overall profitability and growth momentum in the short term.
*Companies ranked based on FY2025 Revenue (highest – lowest)
Looking ahead, the Indian IT Services sector is expected to stabilize and grow at a CAGR of around 10% between 2026 and 2029, slightly lower than the average growth of top-performing companies like Tata Consultancy Services, Infosys, and HCL Technologies. This outlook is supported by expanding enterprise digital transformation initiatives, adoption of cloud and managed services, and government programs promoting technology innovation and exports. The industry’s evolving direction indicates a strategic transition from volume-driven outsourcing toward value-led, outcome-oriented service delivery, positioning India as a global leader in IT services for the coming decade.
Here is a quick overview of key players in the IT services segment.
Infosys Ltd
Infosys Ltd is a global leader in technology services and consulting, headquartered in Bengaluru, Karnataka. The company offers a comprehensive range of services, including software development, digital transformation, cloud solutions, and enterprise resource planning (ERP) systems. Infosys serves various industries such as aerospace and defense, agriculture, automotive, communication services, consumer packaged goods, education, financial services, healthcare, high technology, industrial manufacturing, information services and publishing, insurance, life sciences, logistics and distribution, media and entertainment, mining, oil and gas, professional services, public sector, retail, travel, hospitality, and utilities. With a global presence across the Americas, Europe, the Middle East, Africa, and Asia-Pacific, Infosys is committed to delivering innovative solutions that drive business transformation.
Wipro Ltd
Wipro Ltd is a leading provider of software solutions, IT consulting, and business process outsourcing (BPO) services, headquarters in Bengaluru, Karnataka. The company offers a wide array of IT services, including digital strategy advisory, technology consulting, custom application design, development, re-engineering, and maintenance. Wipro serves diverse industries such as healthcare, retail, aerospace and defense, public sector, banking and financial services, engineering and construction, oil and gas, retail, travel and transportation, media, education, automotive, and consumer electronics. With a global footprint across Asia Pacific, Europe, the Middle East, Africa, and the Americas, Wipro is dedicated to delivering technology solutions that empower businesses to achieve their goals.
Tech Mahindra Ltd
Tech Mahindra Ltd is a multinational technology company headquartered in Pune, Maharashtra. As part of the Mahindra Group, Tech Mahindra offers a wide range of IT services and solutions, including digital transformation, consulting, and systems integration. The company operates in over 90 countries, delivering innovative solutions across various industries such as telecommunications, manufacturing, healthcare, financial services, and retail. Tech Mahindra is committed to helping its clients achieve business transformation through the adoption of cutting-edge technologies and industry best practices.
LTIMindtree Ltd
LTIMindtree Ltd is a global technology consulting and digital solutions company, headquartered in Mumbai, Maharashtra. A subsidiary of Larsen & Toubro, the company enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. LTIMindtree serves over 700 clients worldwide, bringing extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences, and business outcomes in a converging world.
HCL Technologies (HCLTech)
HCL Technologies (HCLTech) is a global technology company headquartered in Noida, Uttar Pradesh. The company delivers industry-leading capabilities centered around AI, digital, engineering, cloud, and software, powered by a broad portfolio of technology services and products. With a presence in over 60 countries, HCLTech serves various industries, including financial services, manufacturing, retail, and healthcare, providing innovative solutions that drive business transformation.
Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is a global leader in IT services and consulting, headquartered in Mumbai, Maharashtra. A part of the Tata Group, TCS offers a comprehensive range of services, including software development, digital transformation, cloud solutions, and enterprise resource planning (ERP) systems. The company operates in 150 locations across 46 countries, serving industries such as banking and financial services, healthcare, manufacturing, retail, and telecommunications. TCS is committed to delivering innovative solutions that drive business transformation and create value for its clients.
Industry Performance
Both India-based IT service providers and IT product companies have been reviewed to identify the growth prospects of the combined sectors in India. The Indian IT-BPM industry currently employs about 5.43 million professionals, and total software services exports are estimated at $205.2 billion in FY2024–25, with overall IT exports reaching $224.4 billion. Emerging technologies such as AI, Cloud Computing, IoT, and cybersecurity solutions are expected to drive the next phase of growth, with the sector projected to reach $350 billion by 2026.
The performances of key companies in the industry give indications that the industry is profit-making and would be growing in the coming years. The reported margin of the key players was around 13.9%, taking into consideration the data for the last 3 years data. Details are as follows.
Industry Trends
As the global macroeconomic environment evolves, businesses are increasingly adopting digital technologies to adapt to changing market conditions. Given the current technological disruptions and their role in both streamlining business processes and enabling new business models, the Software and IT industry has become a key driver of digital transformation. The following metrics highlight the growth prospects of this industry.
- Artificial Intelligence is becoming integral across industries, with 41% of businesses planning to run up to half of their core processes on AI agents by 2025.
- Cloud services and managed security are leading IT service segments, with cloud services holding a 33.2% revenue share in 2024 and managed security services projected to grow at a 10.8% CAGR through 2030.
- In Q2 FY26, India’s top six IT companies added a net total of 952 employees, marking a 77% decline from the previous quarter, primarily due to significant reductions by Tata Consultancy Services (TCS).
- 67% of companies in India plan to tap into diverse talent pools to fill roles, surpassing the global average of 47%.
- The country’s services exports have achieved a robust CAGR of 14.8% over the past thirty years, positioning India as a global hub for services exports.
In 2024, the Indian government continued to bolster the IT and startup ecosystem through several key initiatives: the Union Budget allocated ₹1,16,342 crore to IT and Telecom, including over ₹500 crore for the IndiaAI Mission and ₹750 crore for cybersecurity; Startup India recognized 1,40,803 entities creating 15.5 lakh direct jobs and supported startups via the Seed Fund Scheme (₹945 crore) and Fund of Funds for Startups (₹6,886 crore committed, catalyzing ₹21,276 crore investments in 1,173 startups) infrastructure and innovation hubs were strengthened through projects like Infopark Phase III in Kerala, the RTIH Future Founders pre-incubation program, and the iTamil Nadu Technology (iTNT) Hub in Chennai, supporting 200 deep-tech and emerging tech startups over five years.