# Software and IT services: Chokepoints and risks

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

Source page: https://www.materialinsights.org/industries/software_it/risks/

#### Chokepoints and risks

- Cloud concentration: Amazon, Microsoft and Google hold 63% of cloud infrastructure revenue, creating lock-in and single points of failure^[3](https://www.srgresearch.com/articles/q2-cloud-market-passes-143-billion-highest-growth-rate-in-eight-years).
- 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 services^[1](https://www.gartner.com/en/newsroom/press-releases/2026-07-27-gartner-forecasts-worldwide-it-spending-to-grow-14-point-2-percent-in-2026-totaling-6-point-37-trillion).
- Hardware and memory shortages are raising costs and slowing projects^[1](https://www.gartner.com/en/newsroom/press-releases/2026-07-27-gartner-forecasts-worldwide-it-spending-to-grow-14-point-2-percent-in-2026-totaling-6-point-37-trillion).
- 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 hard^[2](https://www.etvbharat.com/en/business/india-fy26-tech-revenues-hit-usd-315-billion-enn26022404879).
- Open-source supply-chain attacks and faulty security updates can disrupt millions of machines at once.

## Other sections

- [Overview](https://www.materialinsights.org/industries/software_it/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/software_it/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/software_it/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/software_it/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/software_it/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/software_it/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/software_it/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/software_it/sources/index.md)