Major Transformation in India’s IT Sector with AI

India’s IT industry has entered a new phase as Artificial Intelligence (AI) moves from boardroom discussions to becoming a core revenue driver. From creating PowerPoint presentations to generating business value, AI is now deeply integrated into corporate operations. A clear example of this shift is HCLTech acquiring a 10.46% stake in Indian AI unicorn Sarvam AI for $150 million (approximately ₹1,427 crore). This move reflects how top IT firms are evolving from traditional coding services for Western clients to directly investing in and leveraging foundational AI models.

This transformation is largely driven by rising AI revenues. India’s top IT companies—TCS, Infosys, and HCLTech—collectively generate about $3.2 billion annually from AI services. TCS leads with $2.3 billion, followed by HCLTech with $620 million and Infosys reporting $275 million quarterly AI revenue. Companies are increasingly adopting AI tools, reducing dependency on human workforce expansion. TCS alone uses AI tools in 85% of its top-tier accounts and aims to scale AI capabilities equivalent to a workforce of 500,000 employees. As hiring slows, IT firms are prioritizing AI-skilled professionals, signaling a major shift away from traditional coding roles.