India IT Services To Grow 6-7% In FY27: HSBC

India’s IT services industry is very important for the country. It supports the economy, creates jobs, and helps companies across the world run smoothly. IT services give businesses the digital tools they need to work better and faster.

According to a new report by HSBC Global Investment Research, India’s IT services industry will grow by about 6-7% in FY27. This shows that the industry is strong and can adjust to new technologies such as artificial intelligence (AI).

Our company is proud to contribute to this progress. We provide trusted IT services that help businesses stay up to date. We make it easier for companies to use new technology while improving their efficiency and growth.

IT Services Growth In FY27

HSBC expects Indian IT companies to see revenue growth of around 5-6% in FY27. But the number of projects will rise faster, by about 8-10%. This means IT companies will work on more projects, but each project may bring in less money than before.

The reason is that businesses now ask for IT solutions that are not just about saving money. They want services that give them agility, reliability, and innovation. IT companies will take on more projects, even if each project has a lower value.

This shows that IT services remain central to global business. Our company is ready for this trend. We are an IT solutions provider that can handle more projects efficiently and keep the systems reliable.

How AI Is A Challenge

AI is changing the way IT services are delivered. Many tasks that needed a lot of human effort are now being automated. This makes processes faster and cheaper, but also reduces the value of contracts.

Industry experts say the average value of IT contracts may fall by about 8-10% over the next 3-4 years. That means between 2025 and 2027, contract values may fall by 3-4% every year.

This creates pressure on IT companies because revenue per project goes down. To remain strong, IT providers must reduce costs, improve skills, and keep updating their services. Our company understands this. We are restructuring our IT services and IT solutions so that we can give clients more value at competitive prices.

How AI Is An Opportunity

AI also creates big opportunities. To use AI properly, businesses need to upgrade their old systems. They must move software to cloud platforms, connect systems, and redesign enterprise structures.

This opens new work for IT companies. The main demand areas will include:

• Moving software to cloud-native systems

• Integrating systems for AI-based workflows

• Redesigning enterprise structures for AI use

Our company already works in these areas. We provide IT services that help clients move to the cloud, adopt AI workflows, and modernize systems. We ensure that businesses can adopt AI smoothly and still keep operations safe and reliable.

Strong US Economy Helps Indian IT

The United States is the biggest market for Indian IT services. American companies are showing strong earnings, which makes them confident to spend more on digital technology.

HSBC reports that technology spending in 2025 will increase. This is very important for Indian IT firms. Growth in US spending will balance the lower contract values caused by AI automation.

Our company serves many clients. We provide IT services and IT solutions that support their business goals. The strong US market ensures steady demand for our work, helping us grow while supporting our clients.

Push And Pull In 2026

The year 2026 will bring both positives and challenges. AI will continue reducing contract values, which will put pressure on revenues. At the same time, demand for digital services will remain strong.

Businesses will keep spending on cloud computing, AI-based customer solutions, and cybersecurity. This means IT companies will not grow at double-digit rates like in earlier years but will still achieve steady and moderate growth.

Our company is preparing for this balanced environment. We are improving our IT services and IT solutions to meet growing demand in cloud and cybersecurity while keeping costs under control.

AI Will Not Replace IT Services

Some people think AI and big tech companies like Amazon, Microsoft, and Google will make IT service providers unnecessary. But this is not true.

Enterprises need more than just basic platforms. They require customized IT services, system integration, and ongoing support for their unique needs. Big platforms cannot provide these specialized IT solutions.

Our company offers customized IT services for clients across industries. We combine technical expertise with close client engagement to deliver what large platforms cannot.

Job Market And Restructuring

The IT industry’s workforce is changing. For example, Tata Consultancy Services (TCS) announced salary hikes for almost 80% of its staff in August, focusing on mid-level and junior employees. At the same time, TCS plans to reduce around 12,000 jobs in 2025, or about 2% of its workforce.

This shows that the industry is restructuring. Companies are rewarding skilled employees, but also reducing roles that are less needed in the AI era. Employees now must upgrade their skills to remain useful in an AI-driven world.

Our company invests in training employees. We ensure that our team is ready to deliver modern IT services that clients demand. This makes our workforce stronger and helps us remain competitive.

What It Means For People And The Economy

The key point is that the IT industry is not shrinking because of AI. Instead, it is changing shape. Some older job roles will decrease, but new opportunities are rising in areas like AI integration, cloud infrastructure, and system redesign.

The HSBC prediction of 6-7% growth in FY27 is positive for India. IT services will continue to be a strong part of the economy, supporting exports and creating jobs. The industry will remain one of India’s strongest sectors and will continue to help global businesses innovate.

Our company is dedicated to supporting this future. With reliable IT services and advanced IT solutions, we help clients adopt new technology smoothly and stay competitive. No matter how the industry changes, we are committed to delivering dependable results.