About $300-500 bn new spend pools can be unlocked with Agentic AI, says Nasscom

The report by Nasscom provides a view of how the technology services industry has evolved, and the opportunities that lie ahead as the sector prepares for a decade of accelerated change.

Bengaluru: With Agentic Artificial Intelligence (AI), $300-$500 billion new spend pools can be unlocked, said Nasscom.

On Tuesday, Nasscom with McKinsey & Company released key findings of its report 'Future of Technology Services: Leading with AI', in which it said enterprise tech spending will continue to be resilient, with budgets increasingly directed toward AI to unlock value creation.

However, there will be wide dispersion across verticals, and few micro verticals will dominate investments. Mid-tier enterprises to accelerate tech intensity, it added.

The report provides a view of how the technology services industry has evolved, and the opportunities that lie ahead as the sector prepares for a decade of accelerated change.

Between 2020 and 2025, the technology services sector experienced major structural shifts—from pandemic-driven digital acceleration to the disruptive rise of AI and geopolitical shifts that began to reshape traditional service models. The sector maintained a healthy growth trend in this period and played a key role to accelerate digital transformation for the global enterprise, the report said.

It pointed out that looking ahead, enterprises are recalibrating their technology spend, balancing the need to modernise and innovate with the imperative to control costs. At the same time, disruptive technologies like agentic AI are emerging as key differentiators, requiring both a reimagined technology stack and a new approach to orchestrating workflows.

"While India’s tech services industry will retain a relative growth edge, revenue expansion is projected to remain muted with recovery anticipated between 2027–30, yielding a 5-7 per cent growth over a 5-year period. During this period, demand for productivity will intensify, leading to compression in some legacy service lines while expanding some segments like Data and AI segments which are expected to sustain strong growth of around 12-15 per cent," the findings pointed out.

It also said that the future of tech services will be hybrid, where humans and AI agents will work together to deliver speed, scale, and trust.

Rajesh Nambiar, President, Nasscom, said, “The future of technology services will not be defined by choosing between human expertise and AI-driven automation, but by the powerful convergence of the two. Over the next three to five years, we will see an accelerated rise of hybrid teams, reshaping delivery models, productivity benchmarks, and pricing frameworks toward outcome-driven models."

Commenting on the report, Noshir Kaka, Senior Partner, McKinsey & Company, said, “The global technology services market is entering a phase of both promise and pressure. Agentic AI is opening up significant new growth arenas, providing a unique opportunity for service providers to step up as true transformation partners for enterprises, helping them navigate challenges and scale new possibilities to unlock value."

However, it needs a reset of the industry operating model to both counter near term headwinds and build for the AI era – Investing more in R&D to build competitive IP, reinvent existing offerings and building talent pools for new skills, Noshir Kaka added.