India’s rise as an IT services powerhouse has brought global recognition, but true economic resilience lies in transitioning from a service provider to a creator of intellectual property. To secure its digital sovereignty, the nation must overcome structural hurdles, shift away from an acquisition-first mindset, and aggressively invest in indigenous cloud infrastructure, artificial intelligence, and operating systems.
Building a self-reliant technology ecosystem requires a collective commitment to long-term innovation rather than short-term financial exits. By prioritizing the creation of home-grown platforms and expanding Indian ownership globally, the industry can finally bridge the gap between generating massive amounts of data and owning the technology that processes it, according to Anant Agrawal, CEO & Managing Director, Skillmine Technology Consulting.
CXOToday:India has built a global reputation as an IT services powerhouse, yet ownership of globally influential technology platforms remains limited. What has prevented India from making a stronger transition from services to IP-led innovation?
Anant: India’s success in IT services was built on a strong English-speaking workforce, a favourable time zone advantage, and a large pool of skilled technology professionals. That combination created a strategic advantage that attracted global technology companies and helped establish India as an IT services powerhouse.
However, when it comes to building intellectual property and globally influential technology products, there are a few major challenges.
One of the biggest issues is that many promising Indian technology companies are acquired by larger global players before they can scale independently. I have seen some very good solutions and technology products being acquired by large Western product companies. Flexcube and Darwinbox are such examples. We are creating good technology, but very often the intellectual property eventually becomes part of somebody else’s ecosystem. The M&A action is actively upselling cutting-edge Indian tech companies to the Western world at very attractive prices. As a result, the Indian IP gets lost in the lure of money.
The second challenge is mindset. Some degree of patriotism in technology is missing. Wedepend on other countries’ cloud platforms, operating systems, databases and AI tech. The indigenous part of technology building is not coming through strongly enough. We often choose short-term gains, comfortable careers, and service-driven growth over building our own AI-led and IP-led innovation.
A large part of our technology talent is focused on earning a salary every month rather than taking the harder path of creating and sustaining original technology products. That mindset must change if we want to become a true innovation economy.
The third challenge is structural. Large global consulting firms such as PwC, KPMG, and EY continue to dominate major transformation programs across enterprises and government institutions. While these firms bring significant expertise, our own less thinking of emerging Indian consulting and technology companies to gain meaningful opportunities at scale. As a result, many local innovators struggle to participate in shaping large strategic initiatives and technology decisions.
While government initiatives are helping, there is still a long way to go.
Ultimately, we must acknowledge that a significant part of the responsibility lies with us. We do not invest enough in sustaining our own innovations, and many promising ventures are sold long before they can become global technology leaders.
CXOToday: With a significant share of Indian enterprise data hosted on foreign cloud infrastructure, is digital sovereignty now a strategic business issue rather than just a technology discussion?
Anant: Digital sovereignty has always been a strategic issue.
India has data centres operated by major global cloud providers such as Microsoft, Amazon, and Google. However, we still do not have a dominant Indian cloud infrastructure provider operating at that scale.
This creates an important discussion around ownership, control, and long-term technological independence. Some organisations take data sovereignty very seriously, but until we develop strong indigenous cloud capabilities, it will remain a challenge.
That said, India is seeing growing investments in data centre infrastructure, particularly around Third Mumbai and other key technology hubs. Hopefully, this momentum will help reduce our dependence and strengthen our digital sovereignty over time.
CXOToday: As AI becomes central to business competitiveness, how important is ownership of data, cloud infrastructure, and intellectual property in shaping a country’s digital future?
Anant: It is critical.
Every successful technology ecosystem is built on ownership of its core capabilities. Whether you look at ISRO, DRDO, the automotive or pharmacy sector, progress happens when countries invest in developing and controlling their own technology.
India cannot afford to remain dependent on foreign technology for everything. Unfortunately, I do not see enough seriousness or urgency around this issue today.
Countries like China have made significant investments in building their own technology stacks, operating systems, and digital ecosystems. Unless India begins to own more of its technology infrastructure and intellectual property, becoming a true technology creator will remain a distant goal.
CXOToday: Indian enterprises generate enormous amounts of valuable data every day. Why has India not yet fully converted this advantage into globally recognised technology products and platforms?
Anant: We have ourselves to blame.
Too often, we focus on immediate opportunities instead of long-term technology creation. Building globally successful products requires patience, persistence, and a willingness to invest through uncertainty. The aversion to taking bold risks amongst Indians is a possible contributor to this problem.
Another challenge is talent migration. A lot of these innovations are being driven by brilliant Indians who move to Western countries and contribute to their research and development ecosystems. There is a special term for it, called “The Great Indian Brain Drain”. What this suggests is that the world has become highly interconnected, but India’s attraction towards Dollar salaries remains the biggest part of the problem. Many talented people move abroad because they want to work on cutting-edge technologies and opportunities that may not yet exist at the same scale here. Converting ideas into reality takes time, patience, and the right environment, and that remains a challenge.
Of course, bureaucracy and ecosystem challenges exist, but those are not unique to India. The larger issue is that we have not collectively committed ourselves to building and sustaining world-class technology products over the long term.
CXOToday: Do you believe Indian organisations adequately understand the risks of overdependence on foreign technology ecosystems, or is this conversation still in its early stages?
Anant: I would not call it overdependence. I would call it complete dependence.
Our laptops are not Indian. Our operating systems are not Indian. Our email systems are not Indian. Our cloud infrastructure is largely not Indian. We live and operate almost entirely on foreign technology ecosystems.
Some people are thinking about the issue, but I do not see enough concrete action. The reality is that solving this challenge requires substantial capital and long-term commitment.
Building and sustaining technology platforms at scale cannot be done by small companies alone. It requires large business houses, institutional support, and a collective commitment to creating products that organisations can confidently adopt over the long term.
CXOToday: What practical steps should Indian enterprises take to strengthen indigenous technology capabilities while continuing to leverage global platforms?
Anant: The first step is to stop viewing acquisitions as the goal.
Too many Indian companies are built with the intention of eventually being acquired. Instead, we should focus on creating organisations that can grow independently and become global leaders.
Personally, Skillmine receives frequent acquisition and strategic investment approaches. My response is simple. Rather than helping foreign companies acquire Indian firms, why not identify promising global companies that Indian businesses can acquire and strengthen?
Every Indian finance company that approaches me with a proposal to sell an Indian company to a foreign buyer is, in my view, doing a big injustice to the country. I always ask them a simple question: Why are you not identifying promising foreign companies that Indian businesses can acquire? I have yet to find someone bringing me that proposition.
We need to shift our thinking from selling Indian innovation to expanding Indian ownership of innovation.
Indian enterprises should continue leveraging global platforms where necessary, but they must simultaneously invest in creating their own intellectual property, products, and technology ecosystems.
CXOToday: How is Skillmine contributing to the journey of transforming India from a technology consumer to a technology creator?
Anant: At Skillmine, we follow a few clear principles.
First, our delivery model is intentionally India-centric. While we have offices outside India for sales, customer engagement, and project coordination, all delivery and execution remain based in India. We do not deliver from foreign shores. This allows us to build talent, expertise, and value creation within the country while maintaining flexibility, efficiency, and cost advantages for our customers. It is a conscious design choice that keeps technology creation and execution rooted in India.
Second, we have invested significantly in developing our own Make in India products. Today, we have multiple products that compete effectively with international alternatives, and we continue to invest heavily in their growth and adoption. In 2026, we also began taking these products to international markets.
Third, we actively engage with the public sector. Over the last few years, we have expanded our government business initiatives because broader adoption within public institutions can accelerate acceptance and trust in indigenous technology solutions.
As a bootstrap company, we continuously walk a financial tightrope. Every profit we generate is reinvested into research and development. We need revenue and profitability because that is what enables further innovation. More customers create more profits, and more profits allow us to invest in stronger products, better R&D, and greater global reach.
That cycle is what helps us continue building technology from India for the world.
CXOtoday is a premier resource on the world of IT, relevant to key business decision makers. We offer IT perspective & news to the C-suite audience. We also provide business and technology news to those who evaluate, invest, and manage the IT infrastructure of organizations. CXOtoday has a well-networked and strong community that encourages discussions on what’s happening in the world of IT and its impact on businesses.
Subscribe and get the best of CXOtoday every week, straight to your inbox.
Copyright © 2025 Trivone. All Rights Reserved.
We use cookies to improve your experience on our site. By using our site, you consent to cookies.
Websites store cookies to enhance functionality and personalise your experience. You can manage your preferences, but blocking some cookies may impact site performance and services.
Essential cookies enable basic functions and are necessary for the proper function of the website.
Google reCAPTCHA helps protect websites from spam and abuse by verifying user interactions through challenges.
Statistics cookies collect information anonymously. This information helps us understand how visitors use our website.
Google Analytics is a powerful tool that tracks and analyzes website traffic for informed marketing decisions.
Service URL: policies.google.com (opens in a new window)
Marketing cookies are used to follow visitors to websites. The intention is to show ads that are relevant and engaging to the individual user.
X Pixel enables businesses to track user interactions and optimize ad performance on the X platform effectively.
Service URL: x.com (opens in a new window)
You can find more information in our Privacy Policy and Privacy Policy.
Leave a Reply