This paper aims to describe the changing innovation strategies of Indian IT industry firms. Indian firms are responding to global technological discontinuities proactively and faster, compared to the past. Innovations continue to be process driven, however, there is significant focus on non-linear, products & platforms-led growth strategies. There has been an upward shift in R&D/IP emphasis, as empirical data suggests, and emphasis on collaborative innovation. Firms are willing to make riskier investments compared to past. The paper also discusses some of the challenges the players face, as they build the next generation innovations and offerings. Nature of emerging technologies provides further scope for firms to come up with innovative products, services and solutions. Key conclusion is that the innovation strategy of Indian IT industry has changed from ‘reactive’ to ‘active’.