How Indian IT Giants Are Embracing AI: A Shift Towards Integration
Indian IT Firms Transition to AI-Centric Models
New Delhi: Major Indian IT companies are strategically repositioning themselves as leaders in AI, emphasizing high-margin applications and integration rather than engaging in high-risk foundational research.
An analysis of the FY25 annual reports from industry leaders such as TCS, Infosys, Wipro, and Tech Mahindra reveals that these firms are not vying to create foundational AI technologies; instead, they aim to excel as integrators of AI solutions.
This shift from broad digital transformation to a concentrated focus on AI is evident in the titles of their annual reports. TCS highlights its strategy with the theme "The Perpetually Adaptive Enterprise," which is driven by an "AI-First approach."
Infosys adopts a straightforward theme, "AI Your Enterprise," while Wipro emphasizes its role in "Helping Clients Build AI-Powered Future-Ready Businesses."
Tech Mahindra adds to this narrative with its slogan, "AI Delivered Right."
These IT firms are increasingly investing in human capital and enhancing their workforce's skills.
TCS has reported that over 100,000 employees have gained advanced skills in AI/ML and GenAI, while Infosys claims that more than 270,000 employees are now "AI-Aware."
Similar trends are noted at Wipro and Tech Mahindra.
"The emergence of AI, with its vast potential, introduces a new level of uncertainty. As businesses explore AI applications across all operations, longstanding challenges will become apparent," stated Infosys Chairman Nandan Nilekani.
He emphasized the urgency of modernizing legacy systems and developing a data architecture that allows all company data to be utilized by AI comprehensively, urging firms to establish an AI foundry and factory to drive innovation and scalability.
"Consider AI as a gifted child prodigy raised in a library, with access to all knowledge. It absorbs everything—information, fact, fiction, truth, and untruth, as well as every human behavior pattern. When utilized effectively, it can generate remarkable value, especially for companies like TechM," remarked Anand G Mahindra, Chairman of the Mahindra Group.
Industry estimates suggest that the global AI market is set to soar, potentially reaching USD 1.3 trillion in the next decade.
Rather than developing their own large language models (LLMs) to rival OpenAI or Google, these firms are strengthening partnerships with hyperscalers like Microsoft, Google, and AWS, as well as chip manufacturers such as Nvidia, to leverage the latest models and infrastructure.
Companies are establishing dedicated spaces for co-innovation; TCS is launching AI Centres of Excellence and AI Labs, while Infosys is creating its AI foundry, enabling clients to test AI in a controlled setting.
Their strategy is based on the belief that as AI becomes a standard utility, the greatest value will be derived not from those who create it, but from those who can seamlessly integrate it throughout the enterprise.
TCS, India's largest IT services provider, views generative AI as a "civilizational shift" that will positively impact every sector.
Tata Sons Chairman N Chandrasekaran, who also leads TCS, announced that the USD 30 billion IT services firm plans to develop a "large pool" of AI agents to collaborate with humans and provide solutions in a "human AI" model in the future.
Wipro has also announced a restructuring of its Global Business Lines (GBLs) to better meet client demands and seize opportunities in AI, cloud computing, and digital transformation.
"This evolution of our business lines will sharpen our focus on client needs with consulting-led and AI-powered solutions, allowing us to deliver customized, high-impact transformations," stated Wipro CEO and MD Srini Pallia.