India's technology services industry is positioned to capitalize on a massive AI-driven transformation, with Nasscom estimating that agentic AI could create an additional $300-400 billion addressable market for technology services by 2030. As reported at the Nasscom US CEO Forum held in New York, the sector is shifting towards platform-led growth with stronger focus on proprietary solutions, governance frameworks and intelligent operations. The industry body emphasized that future growth will increasingly be driven by AI platforms, domain expertise, cybersecurity, governance frameworks and outcome-based delivery models instead of linear workforce expansion.
The technology services sector is already experiencing significant AI adoption, with nearly 25% of technology services companies having already deployed AI use cases into production. According to Nasscom, the sector is generating an estimated $10-12 billion in AI services revenue, while more than two million professionals have AI skills and around 85% of technology service providers have developed agentic AI platforms. As reported by NDTV Profit, Nasscom Chairperson Srikanth Velamkanni emphasized that India should not remain dependent on access to a handful of proprietary frontier AI models and should instead make full use of rapidly improving open-weight models to strengthen the country's cyber resilience.
India should continue engaging with the US government for access to the world's most advanced artificial intelligence models while simultaneously testing its own critical infrastructure using powerful open-source alternatives, according to Nasscom leadership. As reported by NDTV Profit, Velamkanni specifically referenced models such as Kimi K2.7, GLM 5.2 and Qwen 3.7, which are increasingly capable of solving complex problems and can be deployed to identify vulnerabilities across India's financial and other critical infrastructure. The industry body noted that the next phase of AI is not about experimentation alone, but requires data readiness, workflow redesign, secure deployment, governance and change management where Indian technology services companies have deep experience.
The wave of multi-billion-dollar investments announced by Microsoft, Amazon and Google into India's AI infrastructure will have benefits far beyond data centres, Velamkanni stated. As reported by NDTV Profit, these investments will create jobs, spur ancillary industries and improve the experience for Indian consumers by reducing latency as AI workloads are processed locally. Hosting critical AI infrastructure in India also strengthens the country's strategic position in the global technology landscape, with the sector expected to remain a key partner in global enterprise transformation as AI adoption accelerates.
On concerns that rapid advances in AI could hurt India's ₹2,80,000 crore IT services industry, Velamkanni struck an optimistic note. According to NDTV Profit, while entry-level hiring has slowed and could remain muted in the near term, he said AI would ultimately increase demand for software rather than reduce it. Citing Jevons paradox, which is the economic principle that lower costs often lead to higher consumption, he said cheaper AI would dramatically expand software usage, creating fresh demand for technology talent. As reported by Nasscom, enterprises would continue to rely on specialised technology partners as AI adoption expands, with demand rising for enterprise modernisation, AI governance, cybersecurity, data readiness and intelligent operations as organisations move AI projects from pilot stages to large-scale deployment.
