AI Transition a Challenge for IT Industry - Vijayakumar

HCL Technologies CEO C Vijayakumar said that the transition to Artificial Intelligence could be a painful process for the IT industry due to its large workforce base. However, he noted that just as the industry successfully navigated the Y2K challenge, it must reinvent itself once again. He expressed confidence that the industry possesses the necessary capabilities to adapt. He made these remarks at the Technology and Leadership Forum organized by NASSCOM.

He stated that the domestic IT sector is currently at a crucial juncture and is likely to undergo significant transformation over the next five to ten years. While advanced AI models are excelling in coding, coding accounts for only a portion of overall software development, leaving room for broader opportunities. He also said investors may be overreacting regarding IT stocks.

Vijayakumar added that demand for specialized skills will rise in the coming years, urging professionals to upgrade their capabilities accordingly. Companies that grew rapidly by charging high fees for Software as a Service offerings may face pricing challenges ahead. Firms that made large investments in infrastructure without assured returns could also encounter financial pressure.