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AI startups challenge India's $264 billion IT services giants

Business Standard

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October 28, 2025

Anew wave ofartificial intelligence (AI)-native startups — companies built from the ground up with Alat their core —are challenging traditional players in India’s $264 billion information technology (IT) services sector.

- PEERZADA ABRAR

India’s IT services exports underpin global technology and digital transformation. As large language models (LLMs) and AI upend traditional, people-heavy outsourcing methods, both globalenterprises and nimble startups are disrupting traditional delivery models, according to venture firm Bessemer Venture Partners, which unveiled a report titled, “AI services road map: Reinventing IT services in the age of AI”.

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