16% Of India’s IT Firms Reach ‘Accelerated Innovation’ Stage: Report

India’s IT sector is shifting from scale‑driven services to a high value, innovation‑focused model, with 16 per cent of companies reaching an “accelerated” stage of innovation, the report said on Wednesday.

The industry’s Innovation Velocity Ratio rose from 7:2 to 8:2 over the past year, which indicates that for every two employees lacking innovation opportunities, eight are now ready to innovate, compared to seven last year, according to a workplace culture research firm, Great Place To Work India report.

Digital Transformation & AI Investments

The shift to innovation focused model 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, the report said. Consequently, companies are ramping up their investments in digital transformation, AI solutions, expanding capabilities, diversifying customer bases, and developing their workforce at scale to remain competitive.

While only one in five IT companies has fully embedded innovation into daily operations and decision‑making processes, many firms are establishing the work environments, leadership styles, and internal structures needed to support large-scale innovation, the report noted. While many companies are adopting AI, only around 3 percent have rolled it out extensively across all business functions, the firm said.

AI Adoption Still Limited

The majority of organisations are cautiously optimistic regarding the adoption of AI, with about 15 percent of employees expressing strong enthusiasm for its rollout, it noted. The report highlighted improvements required in skills readiness, data governance, implementation costs, and measuring ROI.

Hiring Trends & Workforce Dynamics

Hiring strategies are shifting to focus on specialised digital skills in fields like AI, cloud computing, cybersecurity, and data science. While attrition has slowed down in the IT sector, retention continues to lag behind many other industries, with 19 per cent of employees wanting to leave the organisation, it noted.

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