Software and IT services: Chokepoints and risks

Operating systems, business applications and outsourced IT services, a core Indian export

Cloud concentration: Amazon, Microsoft and Google hold 63% of cloud infrastructure revenue, creating lock-in and single points of failure³.
AI-driven shift in spending: data-centre systems spending is forecast to grow 62.5% in 2026 against 5.3% for IT services, squeezing labour-based services¹.
Hardware and memory shortages are raising costs and slowing projects¹.
Indian dependence on exports: US$ 246 billion of the estimated US$ 315 billion FY26 revenue comes from abroad, so US visa, tariff or demand shocks hit hard².
Open-source supply-chain attacks and faulty security updates can disrupt millions of machines at once.