New Delhi, Nov 20: Artificial intelligence is projected to become the primary growth driver for India's IT services and software export industry, with AI-led initiatives expected to contribute up to 20 per cent of sector revenue by 2030, according to a report.

The report from investment bank Equirus Capital said AI is transforming delivery models and boosting productivity by 45-50 per cent in Indian tech firms.

“AI adoption by Indian tech firms is leading to a shift in pricing models from Time and Material (T&M), which dominate at present, to Outcome-based pricing (OBP). AI tools, especially Agentic AI, are taking over tasks like testing, coding, and maintenance, leading to productivity jumps,” said Sandeep Gogia, Managing Director and Sector Lead – Tech and Digital, Equirus Capital.

This sharp productivity lift is pushing Indian IT firms to build deeper AI capabilities across delivery, platforms, and talent development.

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The report said that three clusters will drive the next wave of mergers and acquisitions (M&A), such as AI-enabled delivery, AI-enabled platforms and AI skill advancement.

Tech services firms will increasingly acquire companies with proprietary IP, automation frameworks, and AI-first delivery models. Enterprise software platforms that embed AI into product architecture early will see significantly higher revenue momentum and strong investor interest, Equirus said.

"We forecast GCCs to surpass $100 billion by FY2030, as companies move high-value work from outsourcing to in-house centres, driven by policy support, expansion into tier 2 and 3 cities and India’s talent pool," said the report.

AI adoption is playing a key role in improving unit economics, with leading businesses in India experiencing 200–400 bps margin expansion from AI-driven operations automation.

Profitable digital firms are already seeing a 15–20 per cent valuation re-rating in CY25, the firm noted.

(IANS)