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Bessemer Sees India’s IT Market Reaching $400 Billion by 2030 on AI-Driven Outsourcing

Bessemer frames current automation-led price pressure as a pause before larger AI outsourcing demand.

Overview

  • India’s IT sector is estimated at about $264 billion after growing 8.1% annually from FY22 to FY25, with Bessemer projecting roughly 8.7% yearly growth through FY30.
  • Bessemer’s roadmap cites rapid enterprise AI adoption and a step-change in global outsourcing as the main drivers of the forecast.
  • Nithin Kaimal notes clients are using AI efficiency gains to push for lower rates now, but he characterizes the slowdown as temporary.
  • The report highlights a window for AI-first startups to win complex mandates even as incumbents such as TCS, Infosys, and HCLTech retain primacy through build, partnership, or acquisitions.
  • Supporting signals include global IT-services M&A nearly doubling from $4.4 billion in 2022 to $10.5 billion in 2024 and Indian AI startup funding rising about 50% to around $665 million in early 2025, as automation reshapes the billable-hour model with margins expected to hold.