Driving Growth Through Internal Alignment in India’s IT Sector

India’s Information Technology (IT) sector is a global juggernaut, poised to reach $350 billion in revenue by 2026. For senior leaders and decision-makers, unlocking this potential hinges on one critical factor: internal alignment. Without cohesive strategies uniting technology, sales, delivery, finance, and legal teams, even the most ambitious plans for market expansion and revenue growth risk falling short. This article explores the Indian IT landscape, highlights recent developments, dissects key challenges, and provides a hybrid consulting perspective to foster internal alignment for sustainable scaling operations.

Industry Overview & Context: A Dynamic Growth Engine

The Indian IT sector, contributing 7.5% to India’s GDP in FY23, is on track to hit 10% by FY25, driven by digital transformation, Software-as-a-Service (SaaS) expansion, and surging global client demand. IT spending in India grew 11.1% in 2024 to $138.6 billion, fueled by cloud computing, AI, and cybersecurity adoption. Venture capital continues to empower innovation, with India’s 114 unicorns securing over $70 billion since 2019.

Growth strategies are evolving rapidly. Companies are embracing product-led scaling, where proprietary solutions drive customer acquisition and retention. Vertical integration enhances operational efficiency, while innovation-driven Go-to-Market (GTM) models leverage AI and analytics to capture global markets. However, achieving internal alignment across technology, sales, and delivery is critical to execute these strategies effectively and drive revenue growth.

1. Recent Developments Shaping India’s IT Landscape (June 2025)

Several developments are reshaping the sector, creating opportunities and complexities:

• Tech Budget Increases in US/EU Markets: Global IT spending in the US and EU rose 10.8% in 2024, driven by demand for AI, cybersecurity, and cloud solutions. Indian firms, particularly in data annotation (projected to reach $7 billion by 2030), are well-positioned to capitalise on this growth.
• Productisation of Services (IP-led Growth): Indian IT firms are shifting from custom services to proprietary IP, with the software product industry expected to hit $100 billion by 2025. Companies like HCLTech are investing in GenAI labs to drive revenue growth through IP-led solutions.
• SEBI’s Relaxed IPO Norms: In 2025, SEBI eased IPO regulations, enabling tech firms like BlueStone to access public capital markets. This supports scaling operations and market expansion for startups and mid-sized firms.
• Skilling Push for GenAI and Cybersecurity: Budget 2025 allocated Rs. 500 crore for an AI Centre of Excellence, training 6.5 lakh professionals in GenAI and cybersecurity to meet global demand.
• MeitY’s Export and Startup Support: MeitY’s 2025 Budget measures, including the PLI scheme for IT hardware, aim to boost exports to $224 billion in FY25, fostering startup growth and market expansion.

These tailwinds underscore the need for internal alignment to translate opportunities into sustainable growth.

2. Key Challenges & Nuances in Achieving Internal Alignment

Despite the sector’s promise, several challenges hinder internal alignment and scalability:

• Misalignment Across Teams: Technology, sales, and delivery teams often pursue conflicting priorities. Sales may overpromise features, while engineering struggles to deliver, eroding client trust and stalling revenue growth.
• Legacy Contract Dependence: Many firms rely on low-margin legacy contracts, limiting scalability. Transitioning to high-margin IT business models like SaaS requires cultural shifts and unified execution.
• Resistance to SaaS/Platform Pivots: Shifting to product-led models demands new skills and mindsets. Internal resistance, rooted in familiarity with service-based workflows, disrupts internal alignment.
• Leadership Vision vs. Execution Gaps: Ambitious leadership visions for market expansion often fail to translate into ground-level execution without clear communication and shared objectives.

These challenges highlight the need for internal alignment to synchronise strategy and execution.

3. Strategic Implications Through a Hybrid Consulting Lens

A hybrid consulting approach—integrating management, finance, legal, and technology expertise—offers solutions to foster internal alignment and drive scaling operations:

• Growth Strategy Customisation by Company Size

1. Enterprises: Large firms like TCS should focus on vertical integration and strategic acquisitions (e.g., TCS’s $187.1 million TRIL Bengaluru deal) to enhance capabilities. Internal alignment around key account management ensures cross-selling success.
2. Mid-Market Firms: These companies must specialise in niche markets, aligning sales and engineering through shared KPIs to drive revenue growth.
3. Startups: SaaS startups should leverage agile GTM strategies and investor feedback to refine product-led growth, maintaining internal alignment during rapid scaling.

• Cross-Functional Alignment for GTM Clarity

Internal alignment across sales, marketing, product, and delivery teams is vital for GTM success. Shared KPIs—such as time-to-market and customer retention—break down silos, ensuring cohesive lead generation and customer onboarding. Regular strategy reviews reinforce alignment with market demands.

• Strategy Audits for Product-Client Alignment

Conducting strategy audits aligns product roadmaps with client needs and revenue growth goals. By analysing market trends, customer feedback, and competitive landscapes, firms can optimise resource allocation. For example, AI-driven analytics can streamline delivery, enhancing internal alignment.

• Leveraging Investor Feedback Loops

Investors offer strategic insights into market trends and scalability. Integrating their feedback into strategic planning refines IT business models, ensuring alignment with global demand. This requires internal alignment to adapt strategies swiftly.

Illustrative Examples of Internal Alignment Success

• Case Study 1: Mid-Sized IT Firm’s KPI-Driven Growth

A mid-sized IT firm struggled with misaligned sales and engineering teams, leading to stagnant revenue growth. By implementing shared KPIs—such as solution adoption and repeatable revenue—the firm fostered internal alignment. Sales focused on standardised solutions, while engineering prioritised reusable components. This alignment doubled revenue within 18 months, attracting strategic clients and enabling market expansion.

• Case Study 2: SaaS Startup’s Product-Led Triumph

A Bengaluru-based SaaS startup shifted from a sales-heavy GTM to a product-led model. By aligning product development with customer success feedback and empowering sales to focus on enterprise deals, the firm achieved internal alignment. A freemium tier and intuitive user experience tripled ARR within 12 months, showcasing the power of cohesive strategic planning.

Conclusion: Internal Alignment as the Key to IT Success

India’s IT sector is poised for unprecedented growth, driven by digital transformation, SaaS expansion, and global demand. However, sustainable revenue growth and market expansion depend on internal alignment. Senior leaders must foster leadership clarity, implement structured growth strategy frameworks, and align technology, sales, delivery, finance, and legal teams around shared objectives. By leveraging strategy audits, investor insights, and cross-functional collaboration, Indian IT firms can overcome challenges like legacy dependencies and resistance to new IT business models. With unwavering internal alignment, the sector can achieve its $350 billion target by 2026, cementing India’s position as a global IT leader.

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