According to the latest insights from Great Place To Work® India, which is recognized as a global authority on workplace culture, the IT sector in India is undergoing a remarkable transformation. For years, this industry has been known for its scale and global leadership in service delivery, but it’s now making a steady shift towards a high-value, innovation-focused model.
This change is driven by evolving global market expectations, rapid technological advancements, and a growing ambition within the sector to spearhead the next wave of digital impact. Consequently, companies are ramping up their investments in digital transformation, AI solutions, expanding capabilities, diversifying customer bases, and developing their workforce at a large scale to remain competitive and prepared for the future.
The research indicates that innovation has become more of a necessity than just a competitive edge. In fact, the industry's Innovation Velocity Ratio (IVR) increased from 7:2 to 8:2 over the past year, which indicates that for every two employees who lack innovation opportunities, eight are ready to innovate as compared to seven last year. This showcases that employees are feeling more ready, inspired, and empowered to innovate at work.
Innovation Velocity Ratio (IVR) is a metric that prepares companies to adapt better to any disruption, which is the biggest competitive advantage today. While only 1 in 5 companies has fully woven innovation into their daily operations and decision-making processes, many IT firms are on the path to progress, establishing the work environments, leadership styles, and internal structures needed to support large-scale innovation.
Our report examines how AI is being integrated across the industry. While many companies are adopting AI, only around 3 percent have rolled it out extensively across all business functions. The majority of organizations are cautiously optimistic regarding the adoption of AI, with about 15 percent of employees expressing strong enthusiasm for its rollout.
Insights from a recent Voice of CHROs survey conducted by Great Place To Work reveal that the industry is actively navigating the challenges associated with implementing complex and transformative technologies.
Although there’s still work to be done in areas like skills readiness, data governance, implementation costs, and measuring ROI, organizations are taking thoughtful steps to build transparency, trust, and employee confidence as they incorporate smarter systems into daily operations.
The report indicates a positive evolution in the talent landscape. Hiring strategies are shifting to focus on specialized digital skills in fields like AI, cloud computing, cybersecurity, and data science. Companies are now placing a higher value on learning agility and a growth mindset. Successful workplaces aren't just integrating high-potential talent into existing frameworks; they're also providing opportunities for these individuals to shape and enhance workplace culture from within.
Retention remains a critical focus area, and the data highlights both achievements and ongoing opportunities. While attrition has slowed down in the IT sector, retention continues to lag behind many other industries, with 19% of employees wanting to leave the organization. The findings also indicate that employees are more likely to stay with companies that demonstrate meaningful forward momentum.
Employees in environments without visible AI adoption are 46 percent more inclined to express a desire to leave, indicating that technological advancements play a significant role in reinforcing employee confidence and long-term loyalty.
Employee expectations are evolving positively. Beyond stability and pay, more of the workforce is seeking roles that provide purpose, challenge, and ownership. While 18 percent of employees feel their work could have more meaning, the report highlights that companies that allow employees to experiment, build, and even learn from failure are consistently witnessing stronger engagement and greater organizational agility. These supportive environments are increasingly translating innovation into real business outcomes, leading to quicker digital transformation, increased market responsiveness, and higher employee pride, along with improved client satisfaction.
"India’s tech industry is steadily transitioning from a traditional IT services model to a more innovation-driven approach. While AI and deep tech are gaining traction, the shift is gradual and shaped by practical factors like talent upskilling, cost optimization, and regulatory frameworks. Our study found that employees are 89% more likely to be excited to use AI when they are given meaningful opportunities for innovation. The Innovation Velocity Ratio (IVR) of the IT Sector for this year indicates that for every two employees who lack innovation opportunities, eight are ready to innovate. Despite the increasing competition and challenges in AI adoption, the rise of IVR demonstrates that our talent is prepared for the next wave of technological disruption. I sincerely congratulate all the winners of India's Best Workplaces in IT & IT-BPM 2025, who are elevating the standard of global IT excellence.” – Balbir Singh, CEO, Great Place To Work® India
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