"Artificial intelligence is the new electricity. I have a hard time thinking of an industry that AI will not transform." - Andrew Ng, AI pioneer
Mega deals return!
Indian IT firms, suffering from an AI onslaught, reported a surge in billion-dollar contracts recently. Cognizant, TCS, and Infosys secured three mega deals, marking a shift as companies deploy artificial intelligence to modernize legacy IT infrastructure for global clients.
Shift toward platform transformation
The industry is moving from labour-heavy outsourcing toward platform transformation. Large enterprises are consolidating vendors and committing to multi-year programs. This helps businesses reduce service providers while focusing on long-term efficiency and AI-led models.
Success for major players
TCS and Cognizant have been successful lately. Cognizant secured a contract with Novartis, while TCS clinched a deal from a North American financial institution. Infosys signed an agreement with the NHS, showing broad market participation.
Financial growth from AI
AI is a core revenue component. HCLTech reported advanced AI revenue of $146 million. TCS ended the year with 1.8 billion dollars in annualised AI revenue. These figures reflect interest in AI-led modernization globally.
Future outlook for services
Experts suggest traditional services may see shrinking margins, offset by AI. The strategy involves building a technology foundation before leading with AI-driven changes. This allows providers to maintain a competitive advantage through platform-based solutions.
Summary
Indian IT firms are securing billion-dollar deals by integrating AI into legacy systems. As enterprises consolidate vendors, companies are shifting toward platform-based models. This helps offset declining margins in traditional services through high-value digital transformations.
Read more on Indian IT and AI? Click here
Food for thought
Will the shift to AI-driven automation eventually diminish the workforce advantage that Indian IT has traditionally relied upon for global dominance?
AI concept to learn: Agentic AI
Agentic AI involves autonomous systems that plan and execute complex tasks to achieve goals. For a beginner, it represents the shift from software that answers questions to systems that perform actions. These agents can interact with tools to manage workflows independently.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
