16% of IT Firms Reach Accelerated Innovation Stage: Report

New Delhi- India’s IT industry is rapidly transitioning from scale-based services to a high-value, innovation-driven model, with 16 per cent of companies now positioned in the “accelerated” innovation stage, according to a report released on Wednesday.

The sector’s Innovation Velocity Ratio improved from 7:2 to 8:2 over the past year, indicating that for every two employees who feel they lack innovation opportunities, eight are now ready and equipped to innovate—up from seven last year, workplace culture research firm Great Place To Work India said.

This shift toward an innovation-centric approach is being propelled by changing global market expectations, fast-evolving technologies, and a growing ambition among Indian IT firms to lead the next phase of digital transformation, the report highlighted.

To stay competitive, companies are increasing investments in digital transformation, AI solutions, capability expansion, workforce development, and customer base diversification.

However, only one in five IT firms has fully integrated innovation into everyday decision-making and operations. Many organisations are still in the process of building supportive workplaces, leadership approaches, and internal structures to enable innovation at scale.

Despite growing interest in AI, just 3 per cent of companies have deployed it comprehensively across all business functions. Meanwhile, only around 15 per cent of employees express strong enthusiasm for organisation-wide AI adoption, the report added.

Key areas requiring improvement include skills readiness, data governance, implementation costs, and effective measurement of return on investment.

Hiring patterns are increasingly prioritising specialised digital skills in AI, cloud computing, cybersecurity, and data science.

Although attrition has cooled in the IT sector, retention remains a challenge, with 19 per cent of employees expressing a desire to leave their organisation, the report said.

With inputs from IANS