Indian IT services sector expected to achieve mid-single-digit USD growth in FY26

The Indian IT services sector is projected to grow at a steady pace in the coming year, with a mid-single-digit growth rate in USD terms for the financial year 2026 (FY26).

This growth is expected to continue as the demand for technology services remains strong globally, driven by digital transformation, cloud computing, and cybersecurity needs across industries.

Indian IT companies have been providing a wide range of services, from software development and IT infrastructure management to consulting and outsourcing. Their expertise in delivering cost-effective and high-quality services has made them popular with clients worldwide, especially in the United States and Europe. As more businesses adopt digital technologies to stay competitive, Indian IT firms are poised to benefit from the increasing need for skilled technology solutions.

Several factors will contribute to this projected growth. One of the key drivers is the increasing adoption of cloud services. As businesses shift from traditional IT infrastructure to cloud-based solutions, they require robust support and services to ensure smooth migration and operation. Indian IT companies are well-equipped to meet these needs, given their experience and knowledge in managing large-scale IT systems.

Additionally, cybersecurity concerns are pushing companies to invest heavily in securing their data and systems. As cyber threats become more sophisticated, organizations seek advanced security solutions, which Indian IT firms are capable of delivering. With their expertise in this area, Indian companies will continue to play a crucial role in securing the digital infrastructure of businesses around the world.

Another factor influencing the sector’s growth is the rising demand for automation and artificial intelligence (AI) services. Many businesses are looking to improve efficiency, reduce costs, and enhance customer experience through automation. Indian IT firms are investing in AI technologies to help their clients achieve these goals, which will likely drive more growth in FY26.

The Indian IT sector is also benefitting from the increasing trend of outsourcing. As companies focus on their core business activities, they often turn to third-party providers for IT support and services. Indian firms have long been leaders in the outsourcing market, offering a wide array of services that allow businesses to focus on their growth while leaving the technical aspects to experts.

In conclusion, the Indian IT services sector is on track to achieve steady growth in FY26, with the potential for mid-single-digit growth in USD terms. This growth will be fueled by the increasing global demand for digital, cloud, cybersecurity, and AI services. As businesses continue to rely on technology to drive innovation and efficiency, Indian IT companies are well-positioned to meet their needs and contribute to the sector’s ongoing success.