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What Does the Future of the IT Industry Look Like in 2025 in India 

The 21st century is often regarded as the era of technology. This Information Age is marked by newer technologies often regarded as problem-solving and critical thinking. As far as our country is concerned, the future of the IT industry in India is quite bright, given the tremendous rate of globalization and industrialization.

Research indicates that the Indian IT industry will reach $350 billion by 2025. The need for digitization and the businesses’ positive approach toward the same has led to such growth.

If that intrigues you, the following article is nothing less than a gold mine as we will discuss the future of the IT industry in India by the year 2025.


IT Sector- Pillar of Modern India

The IT industry flourished post-independence. Until ten years back, its contribution to the country’s GDP was less than 5%. Currently, it is more than 10%.

Along with the immense revenue, this sector has played a major role in improving employment. It has generated over 10 million job opportunities for the Indian youth.

If we were to take a few examples of the best Indian companies in the IT industry, Tata Consultancy Services is a prominent example. It is considered the world’s second most valuable company in the IT sector, second only to Accenture.

In terms of numbers, TCS has a brand value of $16.786 billion, confirming its overall scope.


Future of IT Industry in India- Upcoming Trends

To better understand the IT sector’s future in India, it is best to learn the upcoming trends. The following trends are projected to rule the Indian IT sector.

  1. Artificial Intelligence and Machine Learning 

Artificial intelligence and machine learning are set to determine the future of IT companies in India. More and more companies in India are opting for newer technologies to facilitate better functionality. In other words, combining artificial intelligence and machine learning helps optimize daily functions efficiently.

Some of the best examples include Google’s predictions, ridesharing apps, AI autopilot, facial detection, chatbots, etc.

The upcoming years will surely witness a surge in the application of artificial intelligence and machine learning in the IT industry.

  1. Digitization and Virtualisation 

The process of digitization and visualization might not be new to the IT industry, but it is set to bring more revenue in the near future.

The process of virtualization depends on the software that creates a virtual computer system. It allows IT companies to run more than a single virtual system within a single server.

The best example is Metaverse, announced by Mark Zuckerberg. This technology elevates the current virtual reality and aids people in creating their virtual avatars. This can be considered a huge leap from the Oculus VR announced in 2014.

  1. Prioritization to Security 

Cybersecurity is already a big deal, but its importance will increase by 2025. This is because of the increasing number of cybersecurity threats companies face daily.

According to a study, organizations and businesses are planning to give more priority to cybersecurity. More than 69% are planning to increase their cybersecurity budgets.

The antivirus software is bound to evolve as per the user’s requirements. Moreover, end-to-end encrypted data transfer will gain popularity.


Challenges Likely to be Faced by the IT Industry in the Future

It’s not going to be a bed of roses for the IT industry in the future. The following are the most evident challenges that the IT industry will likely face in the upcoming years:

  1. Data Security 

As mentioned earlier, cybersecurity is bound to go strong in the future. However, there’s always a chance of a part of the IT industry falling victim to malware. This can lead to a huge revenue loss for any IT company.

  1. Shortage of Talent 

With more and more IT industries being established daily, finding the right talent to handle the same might be challenging. A huge gap between the skills and requirements might also negatively impact the IT industry. But this is why more and more people are opting for the right education to bridge the gap.

  1. Economic Slowdown 

According to IMF, India’s growth was 7.4%, which was higher than the projected figure (7.2%). While the figures are positive, the world economy might affect domestic functionality, including the IT sector.



All in all, the future of the IT industry in India looks promising. While data security might be a big challenge, it will be exciting to witness the turn of events.

Apart from the nation’s perspective, one can make the best of the changing IT industry by upskilling themselves. Since the demand will enhance, the limited supply of skilled employees can help you land a well-paying, thriving job opportunity. Felix-ITs can help you reach your dream job by upskilling yourself with its plethora of online courses.

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