India is hoping IT start-ups will give the US$150billion industry a “lease of life”.

The industry is making investments in areas such as automation, artificial intelligence, and big data.

India’s largest IT services companies, Infosys and Wipro, have so far invested in 28 firms.

CB Insights said in a report: “India’s IT companies and consultancies were built on the global trend toward outsourcing tech and back office tasks overseas. But these companies are now being threatened by the shifts toward new technologies.

“As India’s IT companies shift their strategies to seek new lines of business and markets, they’re upping their investment activity, in an attempt to absorb innovation and close the gap so as not to be left behind.”

Written by Leah Alger