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Business Case for the IT Industry: Strategic Opportunities

April 29, 2025 12 0 Global Capability Centers IT Services

Business Case for the IT Industry: Strategic Opportunities

The global IT industry is poised for exponential growth, with the market for IT devices alone projected to surge from USD 2.14 trillion in 2025 to USD 4.80 trillion by 2034 at a CAGR of 9.43%. Key drivers include the accelerated adoption of Generative AI, cloud computing, and cybersecurity solutions. Despite formidable challenges like cybersecurity threats, talent shortages, and AI integration complexities, India emerges as a strategic solution. With its vast talent pool, supportive government policies, digital-first ecosystem, and world-class infrastructure, India is rapidly solidifying its status as the global IT and GCC hub for innovation, scale, and digital transformation.

1. Global Market Trends & Projections

  • Market Size: IT devices market valued at $2.14 trillion in 2025, projected to reach $4.80 trillion by 2034.

  • Growth Catalysts: Cloud modernization, AI-powered infrastructure, cybersecurity adoption, and digital transformation.

  • Regional Spend: Americas ($1.65T), APAC ($1.23T), EMEA ($908B) – with India at the forefront of APAC growth.

2. IT Sector Breakdown

  • IT Software: Enterprise software, ERP, CRM, and analytics tools are booming, expected to surpass $1.1T in 2025.

  • IT Services: Led by cloud, outsourcing, IoT, and system integration—set to reach $1.51T in 2025.

  • IT Hardware: Despite a -4.5% YoY dip, segments like security and server computing remain crucial.

  • Communications: Projected at $404.8B; fueled by mobile, fixed data, and satellite services.

3. Key Growth Drivers

  • Cybersecurity Priority: 52% of firms to increase security spend due to AI-driven threats.

  • Digital Transformation: $2.5T spent globally in 2024; 67% of enterprises boosting IT budgets in 2025.

  • AI Boom: Global AI investment to reach $200B by 2025, AI market to hit $3.68T by 2034.

  • Cloud Infrastructure: Cloud spend to hit $805B in 2024, with private cloud and FinOps on the rise.

  • Talent & Workforce Dynamics: 5.4M IT professionals in India; 25% in AI/Cloud roles.

4. Challenges in the IT Landscape

  • Cybersecurity Complexity: Rise in AI-powered attacks, hybrid cloud vulnerabilities, and data compliance.

  • Cloud Cost Visibility: 70% of organizations lack clarity on cloud spend; waste 28–32% of budget.

  • AI Integration Hurdles: Data quality, ethical bias, and delayed ROI remain bottlenecks.

  • Talent Shortage: 90% of global firms expected to face IT talent gaps by 2026.

5. The India Advantage

  • Skilled Talent Pool: Young, tech-savvy workforce with world-class education and digital training (e.g., FutureSkills PRIME).

  • Government Support: Digital India, PLI schemes, 15% corporate tax for new units, DPDP Act 2023.

  • Cost Competitiveness: Up to 60% cost savings on talent, R&D, and infrastructure versus Western markets.

  • Thriving GCC Ecosystem: 1,700+ GCCs generating $46B revenue; 700+ AI startups; growing R&D hubs in Bengaluru, Hyderabad.

  • AI-Friendly Frameworks: India’s DPDP Act enables AI compliance, ethical AI, and localized data sovereignty.

6. Inductus GCC Enablement Models

  • BOT (Build-Operate-Transfer)

  • COPO (Company-Owned, Partner-Operated) with Digital Twin

  • FLEXI (Fully Customizable Agile Model)

These models offer flexible, compliant, and cost-efficient frameworks for global businesses establishing GCCs in India, ensuring operational excellence and accelerated go-to-market readiness.


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