Have 16% of IT Firms Achieved Accelerated Innovation?
Click to start listening
Synopsis
The Indian IT industry is in a state of transformation, moving towards innovation-focused models. With 16% of companies reaching accelerated innovation, the report highlights the shift towards digital transformation, AI solutions, and a stronger push for skilled talent in the sector.
Key Takeaways
- 16% of IT firms have reached an accelerated innovation stage.
- The Innovation Velocity Ratio improved from 7:2 to 8:2.
- Companies are significantly investing in digital transformation and AI.
- Only 3% of firms have fully implemented AI across all functions.
- 19% of employees wish to leave their organizations, indicating retention challenges.
New Delhi, Nov 26 (NationPress) The Indian IT sector is undergoing a transformation, moving away from traditional scale-driven services to a high-value, innovation-centric model. According to a recent report, 16% of companies have reached an "accelerated" stage of innovation.
The Innovation Velocity Ratio in the industry increased from 7:2 to 8:2 over the past year. This means that for every two employees without innovation opportunities, eight are now positioned to innovate, an improvement from seven last year, as reported by the workplace culture research firm Great Place To Work India.
This transition towards an innovation-focused model is fueled by changing global market expectations, swift technological advancements, and a rising ambition within the sector to lead the next wave of digital impact.
As a result, companies are significantly boosting their investments in digital transformation, AI solutions, expanding their capabilities, diversifying their customer bases, and enhancing their workforce to remain competitive.
Despite the progress, only one in five IT companies has fully integrated innovation into their daily operations and decision-making processes. However, many firms are working to create the necessary work environments, leadership styles, and internal structures that can support large-scale innovation.
While a number of companies are implementing AI, only about 3% have deployed it extensively across all their business functions. Most organizations maintain a cautiously optimistic outlook regarding AI adoption, with approximately 15% of employees showing strong enthusiasm for its integration.
The report emphasizes the need for improvements in skills readiness, data governance, implementation costs, and measuring ROI. Hiring strategies are evolving to prioritize specialized digital skills in areas such as AI, cloud computing, cybersecurity, and data science.
Even though attrition rates have decreased in the IT sector, retention still lags behind many other industries, with 19% of employees expressing a desire to leave their organizations.
Point of View
This report underscores an important trend in India's IT sector, showcasing a clear shift towards innovation and digital transformation. The data indicates that while progress is being made, challenges such as employee retention and the implementation of AI solutions remain critical areas for focus as India continues to position itself as a leader in the global IT landscape.
NationPress
26/11/2025
Frequently Asked Questions
What percentage of IT firms have reached an accelerated innovation stage?
According to the report, 16% of IT firms have achieved an accelerated stage of innovation.
What is the Innovation Velocity Ratio?
The Innovation Velocity Ratio rose from 7:2 to 8:2, indicating more employees are positioned to innovate.
What are companies focusing on to remain competitive?
Companies are focusing on digital transformation, AI solutions, and enhancing their workforce to stay competitive.
How many IT companies have fully embedded innovation?
Only one in five IT companies has fully integrated innovation into their daily operations.
What percentage of employees are enthusiastic about AI adoption?
Approximately 15% of employees express strong enthusiasm for AI rollout.
