Indian IT Firms Confront Americas Reliance Amid Gradual Diversification

India’s $250 billion IT services sector, the world’s largest outsourcing destination, faces a growing challenge: its heavy dependence on the Americas. For most of the country’s top software exporters, North America accounts for around half of revenues, while Europe adds another third.  That leaves little room for cushioning when shocks hit. Indian IT companies have marginally reduced their exposure to the Americas in Q1 2026 compared to last year. However, the region continues to remain their largest and most critical revenue driver, underscoring sustained dependency despite diversification effort Even as firms look to Asia-Pacific for growth, the Americas still account for over half of revenues for most players. This highlights both the opportunities and vulnerabi