“The future of AI is not man versus machine, but man plus machine - Ginni Rometty (Former CEO, IBM)
Surge in modernization deals
India’s top IT service providers - TCS, Infosys, HCL Tech, and Wipro have reported a strong rise in software modernization contracts in the second quarter, driven by Fortune 500 companies automating large parts of their legacy systems. The adoption of artificial intelligence (AI) is reshaping how these firms upgrade backend technologies.
AI as a modernization driver
TCS and Infosys have taken the lead in deploying AI for modernization, focusing on transforming traditional client software into intelligent systems capable of managing large data sets. Analysts say the combination of AI tools like GenAI and Agents AI is accelerating return on investment by cutting project timelines.
New revenue momentum
AI-led modernization has become a strategic growth area. The Indian IT majors see short-term contracts delivering faster results, especially in industries like banking, insurance, and healthcare. AI tools now shorten project cycles, making modernization more profitable.
Competitive repositioning
Majors like HCL Tech and Wipro are repositioning themselves as transformation partners rather than maintenance firms. Both are leveraging AI-powered tools to handle modernization tasks efficiently while reducing technical debt for global clients, particularly in non-essential IT service areas.
AI-powered business impact
Experts believe the AI modernization wave will continue as enterprises seek to cut costs, boost performance, and enhance agility. This marks a shift in how Indian IT majors position themselves — from service providers to AI-driven transformation enablers.
Summary
India’s big four IT firms are witnessing a surge in AI-led modernization deals, as global clients move to replace outdated systems with AI-driven software. The trend signals a structural shift toward faster, more profitable transformation projects that strengthen India’s tech leadership in global enterprise modernization.
Food for thought
As AI takes over modernization tasks, will human expertise in traditional IT infrastructure become redundant or evolve into new forms of tech leadership?
AI concept to learn: AI-powered modernization
AI-powered modernization refers to using artificial intelligence to upgrade or replace legacy IT systems. It improves speed, accuracy, and return on investment by automating repetitive tasks, optimizing code, and integrating analytics into the modernization process.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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