India's IT Services Sector Drives Cloud-AI Growth
India's $283-billion IT services market will undergo significant change in 2026 as enterprises increase investments in cloud, AI, and digital modernization, analysts said on Dec. 30, 2025. Gartner projects overall IT spending in 2026 will grow 10.6% to $176 billion, HDFC Securities reports 74% of 577 deals since Q1 FY25 were AI-led, and Gartner forecasts data-centre spending to rise 20.5%. The shift points to larger transformation programs and demand for AI-optimized infrastructure.
Key Points
- 1Gartner projects 2026 IT spending to grow 10.6% to $176 billion, boosting demand.
- 2Enterprises shift budgets from legacy to cloud and AI; HDFC finds 74% of 577 deals AI-led.
- 3Data-centre systems and software spending projected up 20.5% and 17.6%, requiring AI-optimized infrastructure investments.
Scoring Rationale
Credible forecasts and AI-led deal data drive high impact, though findings are sector-specific to India's IT services.
Sources
Public references used for this report.
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