Year: 2025
Type: article
Abstract: This report examines the strategic crossroads facing India's IT sector, which has achieved remarkable success as a global service provider but lags in software product development. Despite projected revenues exceeding US$283 billion in FY25, the sector's reliance on a services-based business model, characterised by resource augmentation and labour arbitrage, creates a significant strategic imbalance. While this model has fuelled substantial economic growth and employment, it has hindered the creation of globally recognised software products. However, India's near-parity in next-generation technologies, particularly AI, coupled with a burgeoning domestic startup ecosystem and supportive government policies, presents a strategic inflexion point. The report argues that transitioning to a product-led growth model is no longer optional but essential for long-term success. A detailed strategic roadmap is proposed, encompassing internal incubation, strategic acquisitions, corporate venture capital, and a fundamental reimagining of talent management. High-potential deep tech domains—including industrial intelligence powered by Deep Reinforcement Learning, high-trust systems integrating AI and Blockchain, next-generation cybersecurity platforms, and AI integration in the defence sector—are identified as areas where India can build world-class products. The report concludes that this shift from service provider to intellectual property creator is not just a corporate imperative but a national economic necessity to establish India as a true 21st-century digital powerhouse.
Author: Partha Majumdar
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4415663746