AI Set to Create $500 Billion Opportunity in India's Tech Services

• Agentic AI set to create $300–500B in new growth opportunities.
• Human AI hybrid teams to redefine delivery, productivity, and pricing.
• India is poised to lead with reskilling, AI adoption, and innovation models.

A recent report indicated that Artificial Intelligence will significantly impact the future of India's technology services sector, with the rise of Agentic AI expected to create $300–500 billion in new opportunities and the beginning of an era of human and intelligent AI agents cooperating as hybrid teams.

The data gathered by Nasscom in collaboration with McKinsey & Company shows that the technology services industry has changed dramatically from 2020 to 2025—everything from digital acceleration from the pandemic to the disruptive rise of AI and changing geopolitics.

As businesses recalibrate their technology investments, AI is rapidly becoming a key differentiator, and firms are expected to dedicate significantly larger shares of their budgets to AI-enabled productivity and innovation.

India's technology services sector is expected to keep its growth advantage while revenue growth will remain modest in the near to medium term and a more robust recovery is expected from 2027 through 2030. Although legacy service lines might decline, the demand for data and AI is expected to increase by 12–15 percent in the upcoming five years.

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A report, named “Future of Technology Services: Leading with AI,” emphasizes that global capability centers (GCCs) in India will become increasingly significant, transforming into global innovation centers for businesses. Rajesh Nambiar, President of Nasscom, stated that the actual future of technology services will be shaped by the merging of human skills and AI-powered automation.

“Over the next three to five years, we will see hybrid teams reshape delivery models, productivity, and pricing frameworks. India is uniquely positioned to lead this shift, but it will require a major push on reskilling and reinventing service models,” he said. Noshir Kaka, Senior Partner at McKinsey & Company, noted that Agentic AI presents a “once-in-a-generation” chance for growth but will also necessitate a shift in the industry's operating model, investments in R&D, and development of talent pools for emerging skills.

The report asserts that for India to establish itself as the worldwide center for technology services in the AI age, the sector must protect its essential services while swiftly transitioning to AI-driven innovations, novel delivery methods, and ambitious collaborations.