Government of Karnataka (GoK) has formulated Karnataka’s IT Policy for the period 2020-2025 with a focus on the continued development of infrastructure, markets, ecosystem, talent and ease of doing business to support the growth of the IT industry. Further, the COVID-19 outbreak necessitates a shift in the outlook and operations of many industries including the Information Technology (IT)/ Information Technology-enabled Services (ITeS) industry. Therefore, the current scenario presents opportunities and challenges, which need to be considered, while Karnataka leads the way in India’s journey towards becoming a trillion-dollar digital economy.