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Over the past 30 years, the IT services sector has consistently outperformed the broader sector, thanks to advancements in technology hardware that often result in the need for investment in software and IT services solutions. Additionally, the Indian IT services sector has benefited from the maintenance and development of older IT systems globally.

Key takeaways

  • IT services has been a core driver of emerging markets (EM) technology performance historically and is a significant opportunity for the future.
  • Services and solutions required to support increasingly complex IT infrastructure will help drive future growth in the industry.
  • Artificial intelligence (AI) can further support innovation and growth in IT services.
  • EM, especially India can fill the labour shortfall for highly-skilled, English-speaking talent in IT services globally.

In this paper, we discuss how emerging market companies could play a crucial role in the AI-driven technology cycle and that this will drive growth in all parts of the industry including semiconductors, infrastructure and IT services. The impact of increasing AI demand has already been felt in semiconductors and is beginning to bear fruit in infrastructure companies.

We believe that the largest unrealised opportunity lies within IT services as companies will have greater need and dependency on more complex and tailored solutions to service their new AI-enabled infrastructure. India’s resources of talent, cost benefit and location will help it continue to play a crucial role in the success of the services industry.

We are very excited for this opportunity to be realised, across not only domestic best-of-breed Indian companies but also the many foreign companies with growing Indian operations.

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