India’s biggest technology services companies are undergoing one of their most significant business transformations in decades. Firms like Tata Consultancy Services (TCS), Infosys, Wipro, and Tech Mahindra have begun deeply integrating artificial intelligence (AI) into their service models, business operations, and client projects.
The AI push comes as global clients increasingly demand AI-led business solutions to improve productivity, automate processes, and reduce costs. Indian IT firms are no longer just talking about AI pilots — they are embedding AI into live projects and making it a core part of how they deliver services.
Executives say this marks a decisive shift from being ‘digital transformation partners’ to ‘AI-native’ companies.
Big Bets on Talent, Tools, and Infrastructure
To support this AI push, India’s IT giants are investing heavily in upskilling their massive workforces. TCS has already trained over 100,000 employees in AI and machine learning, while Infosys has developed AI awareness programs for 270,000 staffers.
Beyond talent, firms are also modernizing their tech infrastructure. Cloud investments, high-performance computing resources, and partnerships with leading chipmakers like Nvidia are helping them power AI projects at scale. AI Centers of Excellence and AI Foundries are being set up to test and deploy AI solutions for clients across sectors like banking, healthcare, manufacturing, and retail.
Partnerships, Not Platforms: An Integration-First Strategy
Unlike American tech giants building proprietary AI platforms, Indian IT firms are taking a practical route — working with hyperscalers like Microsoft Azure, Google Cloud, and AWS. These partnerships allow them to quickly roll out AI-powered services using the best tools in the market without building expensive foundational AI systems from scratch.
For instance, HCLTech recently expanded its partnership with Salesforce to bring “agentic AI” to enterprise clients. Infosys and TCS have also strengthened ties with Nvidia to leverage its powerful GPUs for AI workloads.
This approach helps Indian IT firms move faster in integrating AI into client ecosystems and positions them as reliable AI service enablers.
Rethinking Business Models for an AI-Driven Future
The rise of AI is also forcing these firms to rethink how they make money. Traditionally, Indian IT companies earned revenue based on headcount and billable hours. But AI allows projects to be delivered faster and with fewer people, disrupting this model.
As a result, companies are shifting to outcome-based pricing, where clients pay based on business results rather than time spent. AI is also becoming a key part of large enterprise deals, though executives say deal closures are taking longer as clients weigh long-term AI risks and returns.
Industry experts estimate that the global AI market could touch USD 1.3 trillion within a decade, making this pivot essential for India’s USD 250 billion IT services industry.