Code amidst conflict: Will Indo-Pak tension impact indian IT

As tensions escalate along the India-Pakistan border following Operation Sindoor (Indian retaliation to the assault on innocent tourists by Pakistan-sponsored terrorists in Pahalgam), the IT industry is on edge.

One, the larger impact is on India’s booming IT outsourcing; and two, the big, mid-tier, and small IT services providers need to secure the interests of their clients across industries.

They need to plan for a digital business continuity strategy for both domestic and global clients so that, in the event of retaliatory attacks from Pakistan, the delivery of services is uninterrupted.

But far from the frontlines, inside glass-walled offices from Bengaluru to Hyderabad to Gurugram to Pune and Chennai, the mood is sober, and any escalation will have its ramifications. They need to gear up for that eventuality - for the ‘just in case’ scenario.

When Geopolitics Impacts Global Delivery

At first glance, the answer might seem reassuring. After all, code knows no borders. Yet, the ripples of conflict are rarely so benign. If the situation intensifies, global clients in geos such as the U.S. and Europe, may hesitate to sign new deals or reroute critical projects fearing disruption. In the business of outsourcing, perception can shift quickly, and so can dollars.

There are already travel advisories issued by a few countries to exercise caution while visiting India. While the Indian stock market has shown resilience amid geopolitical tensions, it remains to be seen how far it can sustain its momentum.

Cyber Risks on the Horizon and Currency Fluctuations

The bigger threat we need to be worried about is cyber warfare. State-sponsored cyberattacks are expected to be unleashed, and we are a digital-first nation. Our cyber defense systems will face the ultimate test.

Dr. Yusuf Hashmi, Global CISO at Jubilant Bhartiya Group, says that firms are collaborating closely with government bodies such as CERT-In and NCIIPC, as well as industry associations like DSCI and NASSCOM, to share threat intelligence and identify TTPs (Tactics, Techniques, and Procedures) associated with hostile nation-state actors.

“There’s a clear shift toward proactive security,” Dr. Hashmi notes. “Companies are accelerating the implementation of Zero Trust Architecture (ZTA) to contain lateral movement, conducting regular red teaming and threat hunting exercises to uncover advanced persistent threats, and performing rigorous supply chain audits to mitigate third-party risks.”

He adds that many organisations are now integrating geopolitical risk modelling into their business continuity and cybersecurity planning frameworks.

While progress is evident, Dr. Hashmi warns that the industry’s defensive capabilities are not uniformly strong. “Tier 1 firms like TCS, Infosys, and Wipro have well-established security operations centres (SOCs) and incident response protocols,” he says.

“However, many mid-sized and smaller firms still lack the maturity to detect polymorphic malware or respond effectively to insider threats, and there are notable gaps in securing operational technology (OT) and industrial control systems (ICS).”

He further highlights the sector’s heavy reliance on global cybersecurity tools and platforms as a strategic vulnerability. “In the event of a geopolitical crisis or international sanctions, access to these technologies could be disrupted,”

Dr. Hashmi cautions. “Additionally, the practice of war-gaming cyber resilience under simulated national conflict scenarios remains sporadic at best.”

Dr. Hashmi confirms that escalating threats have already triggered increased investment in cybersecurity across Indian IT firms.

“We’re seeing a definitive uptick in cybersecurity budgets, especially for endpoint protection, secure remote access, AI-enabled threat detection, and SOC upgrades,” he says.

He also points to a growing emphasis on sovereign cloud adoption and data localisation, driven by both compliance and strategic autonomy.

“Cyber resilience has moved from IT to the boardroom,” Dr. Hashmi explains. “CISOs are gaining more influence at the strategic level, and organisations are investing in skill development to train teams on hybrid warfare, cyber deterrence, and advanced threat analysis.”