India's Tech Services Poised for AI Leadership
India's technology services sector is set to maintain its pivotal role in assisting global enterprises during the artificial intelligence (AI) era, as highlighted during the Nasscom US CEO Forum held at the Consulate General of India in New York City. The forum, which included Governor Matt Meyer, Secretary Charuni Patibanda-Sanchez, and CEOs of leading Indian tech firms operating in the United States, emphasized that AI's impact extends beyond automation.
While AI is expected to enhance productivity and reduce standardized repetitive tasks, it will simultaneously drive demand for technology orchestration, data readiness, application modernization, cybersecurity, AI governance, agent management, and industry-specific solutions. The sector is already witnessing this shift, with nearly 25% of technology services companies transitioning AI experiments into production.
Market Opportunity and Skilled Workforce
The industry currently generates an estimated USD 10-12 billion in AI services revenue, with over 2 million professionals skilled in AI and between 100,000 and 200,000 possessing advanced AI capabilities. Approximately 85% of technology service providers now have agentic AI platforms. The forum noted that agentic AI could create an additional USD 300-400 billion addressable market opportunity for technology services by 2030, spanning areas such as data for AI, legacy modernization, agentic workflows, AI operations, cybersecurity, and AI governance.
Expert Perspectives on AI Integration
Ravi Kumar S, Chair of the Nasscom US CEO Forum, stated, "The next phase of AI is not about experimentation alone. Enterprises now need to convert AI capability into production value. That requires data readiness, workflow redesign, secure deployment, governance and change management. These are areas where Indian technology services companies have deep experience and a strong opportunity to lead."
Rajesh Nambiar, President of Nasscom, added, "For more than three decades, Indian technology services companies have helped global enterprises navigate major technology shifts. That rationale for enterprise technology partnerships remains strong in the AI era. Companies will continue to focus on their core businesses and will need specialist partners to deploy and scale AI responsibly." He further noted, "As AI moves into production, enterprises will have to bring together models, applications, data platforms, cloud environments, cybersecurity controls, regulatory requirements and industry systems into a reliable operating model. The value of IT services will increasingly lie in making these systems work together securely, efficiently and at scale."
India's Strategic Advantages
According to the discussions, India's technology services sector is well-positioned for this transition due to its global delivery capabilities, large AI-skilled workforce, enterprise technology expertise, and growing ecosystem of AI platforms, startups, Global Capability Centers (GCCs), and sovereign AI solutions. The forum concluded that Indian tech firms will continue to be indispensable partners for global enterprises seeking to deploy and scale AI responsibly, ensuring secure and efficient integration across diverse systems.
