IT Sector's Contribution to India's GDP Set to Rise from 7% to 10% by 2026

CIOTechOutlook Team | Wednesday, 20 November 2024, 02:22 IST

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The IT industry presently makes up 7% of the GDP, with a projected increase to 10% by 2026. IT and ITeS firms assist numerous organizations by employing various diverse environments, including both on-premises and Cloud platforms.

Nevertheless, as per the white paper, around 80 percent of IT and ITeS companies in India are projected to shift 90 percent of their workload to the Cloud by 2027. It was developed in partnership with Think Teal, a research firm that monitors the corporate ICT market.

A white paper from Airtel Business stated that India's IT and ITeS sector needs to shift from its current cost-focused approach to become a hub for innovation. It mentioned that the industry needs to swiftly transition to Cloud technology and incorporate advanced security into the network for continuous growth.

According to the white paper reviewed by Business Standard, the IT sector can no longer rely solely on cost advantages and skilled domestic resources due to rapid technological advancements, competitive market conditions, and evolving client needs.

Rising expenses of public Cloud services are also driving more companies to transfer data back to private Cloud environments. This also permits increased regulation of the infrastructure. However, the white paper cautioned that integrating Cloud solutions with legacy systems still requires a significant amount of resources.

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