Digital Transformation in the Indian Service Sector: Benefits, Challenges and Future Implications

Currently, India has the fastest growing service sector in the world, contributing over 60% to the country’s Gross Domestic Product (Deloitte, 2022). The growth of the service sector is facilitated by government-led initiatives, aiming to encourage cooperation among firms and start-ups in the field of Information Technology (IT), media, banking, transportation, energy, logistics and education. However, amidst the increasing diffusion of technology (Thrassou et al., 2022a, b), it’s important to examine how digitization influences the service sector, including its challenges and long-term prospects. Therefore, the current chapter explores how service-sector organizations in India have transitioned towards digitalization, the implications they had to face owing to technology adoption and the strategies they implemented towards adaptation.