VOI World/ Desk
Europe is emerging as a major growth market for India’s technology sector, with leading IT companies increasingly expanding operations across the continent as growth in North America moderates.
According to industry data, Europe accounted for 35% of all new delivery centres opened by top Indian IT and engineering services firms during the 2025-26 financial year, a sharp increase from just 11% the previous year. The shift reflects a broader strategic realignment by Indian technology companies seeking new growth opportunities beyond their traditional dependence on the US market.
The Indian IT firms shift focus to Europe trend is being driven by rising demand for digital transformation, artificial intelligence integration, cloud services and regulatory compliance solutions. Industry experts say European businesses are investing heavily in technology modernisation while also seeking local delivery capabilities to meet regional regulations such as GDPR and the Digital Operational Resilience Act (DORA).
Major Indian technology companies, including Tata Consultancy Services, Infosys, HCLTech, LTIMindtree and Persistent Systems, have expanded their European presence through new delivery centres, acquisitions and strategic partnerships. Several firms have also strengthened their footprint in countries such as Germany and across the Nordic region to support growing client demand.
Industry analysts note that Europe has delivered faster revenue growth than North America for several consecutive quarters. Recent estimates indicate that Europe recorded annual growth of around 8.5%, compared with approximately 4.5% in the Americas, making it one of the most attractive markets for future expansion.
The trend is also being supported by increased merger and acquisition activity. Data from industry trackers shows that a significant share of acquisitions by India’s largest IT firms over the past two years have targeted European companies, helping accelerate market access and local expertise.
As global technology spending patterns evolve, Europe is increasingly becoming a key pillar of growth for India’s IT industry, reducing dependence on any single geography while opening new opportunities in AI, cloud computing and enterprise modernisation.
