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India’s IT and AI services market could surge to $400 billion by 2030, fueled by rapid enterprise adoption of artificial intelligence
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India’s IT and AI services market could surge to $400 billion by 2030, fueled by rapid enterprise adoption of artificial intelligence and a “step-jump” in global outsourcing, according to Bessemer Venture Partners’ AI Services Roadmap.
The venture capital firm noted that while automation will trim costs in repetitive service lines, it will also open new demand channels as companies outsource more complex, high-value work. This transition, Bessemer said, creates a rare opportunity for AI-first startups to compete with IT giants such as TCS, Infosys, and HCLTech.
“Three years ago, it was extremely hard for a small startup to challenge an Accenture, Deloitte, or TCS,” said Nithin Kaimal, Chief Operating Officer and Managing Partner at Bessemer Venture Partners India. “It’s still difficult, but there’s now a real window. With the right mix of founders, product and AI depth, and the ability to deliver fast, this is a golden opportunity to capture the next big wave of demand.”
‘Once-in-a-generation’ shift
Bessemer described this as a “once-in-a-generation” transformation for India’s $264-billion IT sector. As enterprises adopt AI in supply chain, analytics, and compliance, smaller AI-native vendors are increasingly taking on workloads once considered too complex to outsource.
“Every CXO today is under pressure from boards and investors to show progress on AI,” Kaimal said. “If a startup can prove its value in four to eight weeks, it can win large, repeatable mandates.”
Partnerships over displacement
While traditional IT firms will remain dominant, the report predicts a surge in partnerships and acquisitions between established players and emerging AI challengers.
“It’s not easy to displace incumbents,” Kaimal said. “We expect a mix — some will build AI capabilities internally, others will partner with or acquire AI-first firms that are scaling quickly.”
Global IT-services M&A nearly doubled between 2022 and 2024, from $4.4 billion to $10.5 billion, underscoring the global race for AI capabilities and domain expertise, the report noted.
Investor momentum
Investor enthusiasm mirrors this trend. Funding for Indian AI startups jumped 50% in the first eight months of 2025 to around $665 million, led by enterprise automation and vertical AI platforms, according to Moneycontrol data.
“The biggest opportunity lies in creating high-quality AI-enabled services,” Kaimal added. “India’s strength in combining advanced AI platforms with strong domain and delivery talent means clients can adopt these solutions and see real impact.”
Bessemer’s core thesis: AI will expand—not erode—India’s IT opportunity.
As global enterprises outsource more AI-led work, both established service providers and new-age startups stand to benefit from the next phase of growth in technology services.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 28, 2025, 07:29 IST
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