16% 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.

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.