AI adoption to propel India’s IT services market to $400 billion by 2030

Bessemer’s report highlights that automation will cut costs in routine tasks while unlocking high-value AI-driven opportunities, enabling agile, AI-first startups to challenge established IT giants like TCS, Infosys, and HCLTech in a once-in-a-generation shift

India’s IT and artificial intelligence (AI) services market is on track to reach $400 billion by 2030, according to Bessemer Venture Partners’ AI Services Roadmap. The report attributes this growth to two key forces — the rapid enterprise adoption of AI across industries and a “step-jump” in global outsourcing. Together, these factors are expected to usher in a new era of technology-driven service delivery, positioning India at the forefront of the global AI revolution.

Bessemer’s report notes that while automation will help companies reduce costs in routine service lines, it will simultaneously create new opportunities for advanced, high-value projects that demand AI expertise. This shift could open the door for AI-first startups to compete directly with long-established IT leaders like TCS, Infosys, and HCLTech, which have traditionally dominated the market.

A new era for AI-first startups

Describing this transformation as a “once-in-a-generation opportunity”, Bessemer highlights that smaller firms with deep AI capabilities and agile business models now have the chance to capture large enterprise mandates.

“Three years ago, it was nearly impossible for a startup to challenge Accenture or Deloitte,” said Nithin Kaimal, Chief Operating Officer and Managing Partner at Bessemer Venture Partners India. “Today, with the right product vision, AI depth, and delivery speed, the opportunity is real and significant.”

Enterprises are increasingly integrating AI into supply chain operations, data analytics, compliance, and customer engagement, creating demand for specialized partners that can deliver measurable impact within weeks rather than months.

Partnerships over disruption

While major IT companies are expected to retain their market strength, Bessemer predicts a surge in partnerships, collaborations, and acquisitions between large service providers and emerging AI innovators. The report points out that global IT services M&A volume has nearly doubled from $4.4 billion in 2022 to $10.5 billion in 2024, reflecting the race to acquire AI-driven intellectual property and talent.

Investor confidence on the rise

The surge in interest is mirrored in India’s investment ecosystem. AI startups raised approximately $665 million in the first eight months of 2025, marking a 50% year-on-year increase, largely driven by enterprise automation and vertical AI platforms.

Bessemer concludes that AI will expand rather than erode India’s IT opportunity, fueling growth through innovation, collaboration, and a stronger focus on high-value digital transformation services.