I'm reading Antrepreneur India, an international franchise of entrepreneur media.
India's leading IT service providers (TATA Consultancy Services (TCS), Infosys, HCLTech and Wipro) are rapidly shifting from traditional outsourcing models to AI-centric approaches in response to changing client expectations and strengthening global competition.
As businesses around the world are looking for greater efficiency, innovation and digital transformation, these IT companies offer the AI they offer to enhance productivity, automation and scalable solutions. This evolution is driven by the need to move beyond labour-intensive services, address margin pressures and provide clients with technology-driven value that is ready for the future.
“To realize this transformation, India's IT majors are investing heavily in their own AI platforms to realize this transformation. Reskilling the workforce, forming strategic partnerships with global technology leaders. By integrating AI into service delivery, automating daily tasks and integrating them into co-authorization with clients, these companies aim to maintain global leadership, to maintain global leadership. The evolving demands of the digital economy,” said DD Mishra, VP analyst at Gartner.
For example, IT Services Major Infoseys has launched Topaz, an AI-first set of services, solutions and platforms, using Geneai (Genai) technology.
“It helps to amplify the possibilities of humans, businesses and communities and leverage opportunities to create value from unprecedented innovation, connected ecosystems and widespread efficiency. InfosysTopaz uses an AI framework that has Infosys applied to build the AI first core that people say is “infectreate in these solutions in a solution.”
“Infosys Topaz helps amplify the potential of both ourselves and our clients. We have a strong interest from our clients for efficiency and productivity programs, even if companies are keen to ensure future growth. Our business operations are greatly benefiting from Infosys Topaz building up the power of generative AI platforms and data solutions. Salil Parekh, CEO and MD, Infosys, said during the launch.
In August 2023, TCS established the AI.Cloud unit and unlocked greater business value by leveraging the power of the cloud and Genai. Earlier this year, TCS reorganized the AI.Cloud split into two different business units.
Last year, Wipro launched the LAB45 AI platform. It leverages Genai, machine learning and deep learning technologies to enable businesses to achieve enhanced efficiency, transform business functions, and enable industry-specific solutions.
The LAB45 AI platform runs on a Software-as-a-Service (SaaS) model, supports a variety of large-scale language models (LLM) from major providers, as well as custom deep learning and other models. With over 1,000 Genai agents and over 10 Genai applications, the platform offers code and low-coded applications for HR, sales, marketing and operational capabilities, making it easy to create industry-specific Genai agents and applications.
The power of partnerships
Companies are also betting on partnerships to gain a competitive advantage in AI. For example, TCS recently expanded its collaboration with NVIDIA to launch industry-specific solutions and products that help customers adopt AI faster and at scale. These solutions and products will be delivered under the AI.Cloud Business Unit through TCS's new business unit focused on NVIDIA. The new business unit is based on a collaboration with Nvidia for over five years, bringing together complementary features from both organizations and providing tailored products for a variety of industries.
According to the recent TCS AI for Business Research, companies around the world are competing to adopt AI, but there is no consensus on AI adoption strategies. Every company's AI adoption journey is unique and involves the interaction of AI with existing enterprise features. Adoption of AI at scale requires a close understanding of the company customized for the context and its practices and building AI models.
To solve this unique challenge, TCS' new units were designed to provide a curated AI recruitment strategy by leveraging investments in the Global Center of Excellence (COES) and the NVIDIA AI platform.
“The curated AI journey derives at the intersection of deep domain and deep technology. This is the space that TCS excels in any business transformation cycle. A unique perspective at the intersection of business and technology helps identify opportunities that are suitable for customers. Siva Ganesan, Head, AI.Cloud Unit, TCS.
Similarly, earlier this year, Wipro partnered with NVIDIA to launch a new Agent AI service that will help nations around the world develop and deploy AI capabilities that promote innovation, economic growth and sovereignty using their own infrastructure, data, labor and business networks.
“By bringing together Wipro's local governance AI framework with Wipro's Wega Studio and Nvidia AI Enterprise Software, our products are leveraging AI for local impact,” Wipro said in a statement.
“There is a growing demand for ethical AI practice and transparency in the AI decision-making process,” said Nagendra Bandaru, president and managing partner at Wipro Technology Services. “Organisations want AI solutions that are not only effective, but also ethical and transparent. By working with NVIDIA, we can quickly deploy AI agent systems and technologies while addressing the growing number of government agencies and organizations in data privacy, security, and national concerns.”
What's ahead
With the exception of TCS and Accenture, most IT service providers are cautious about disclosing AI-specific revenues. This is mainly because AI is often bundled with larger digital conversion projects rather than a clear revenue stream.
“As clients' expectations for measurable, AI-driven outcomes increase and technology becomes more mainstream, we expect more companies to start to highlight their expertise and report AI-related revenues to enhance market positioning. Over the next few years, transparent AI revenue reports could be a key differentiator as they demand greater clear value for technology.
To stand out and succeed in the AI landscape, IT services companies must move beyond basic AI adoption. He says victory requires heavy investments in its own AI platform, developing deep industry expertise, and providing customized, industry-specific solutions to address specific business challenges.
“Differentiation also depends on the ability to scale AI implementations, integrate AI solutions with existing legacy systems, and maintain strong data governance and ethical standards. It can deliver measurable business outcomes, promote co-infringement with clients, and continually mature the workforce with advanced AI technologies.
Essentially, the IT services sector in India is at the inflection point. As clients move from outsourcing to intelligence, winners become people who can move beyond personnel by combining ALE LED innovation, consulting depth and platform thinking. This shift from a labor-driven model to an intelligence-driven outcome represents a critical moment for the industry. As they navigate this complex transition, success depends not only on adopting cutting-edge technology, but also on deeper understanding of trust, agility and evolving client needs. The age of AI-First IT services has begun, and this is just the beginning!
(The story first appeared in the printed version of Antrepreneur India.)
