India’s IT Industry Enters an AI-Driven Era

India’s $245 billion information technology sector is undergoing a rapid transformation as artificial intelligence (AI) becomes central to operations, service delivery, and innovation. From software development to customer service, IT giants like TCS, Infosys, Wipro, and HCL Technologies are integrating AI tools to boost productivity, reduce costs, and accelerate project timelines.

Automation and Workforce Evolution

AI-driven automation is streamlining repetitive tasks, allowing IT companies to focus on high-value services such as AI consulting, cloud migration, and cybersecurity. However, this shift is also prompting a workforce realignment. Industry experts note that while routine jobs may decline, demand for AI engineers, data scientists, and machine learning specialists is surging.

Global Competitiveness and Export Boost

India’s IT exports, which account for nearly 8% of the country’s GDP, are poised for further growth as AI-driven services enhance efficiency and innovation. With U.S. and European clients increasingly seeking AI-powered solutions, Indian firms are positioning themselves as global leaders in AI consulting and implementation.

Upskilling: The Key to Sustained Growth

Recognising the urgent need for new skills, IT companies are investing heavily in reskilling programs. Initiatives like Infosys’ Lex platform and Wipro’s AI Centre of Excellence are aimed at training employees in AI, generative AI, and related technologies. Industry bodies like NASSCOM project that by 2030, over 50% of IT employees will require advanced AI skills to remain competitive.

Challenges Ahead

While AI adoption promises economic gains, it also brings challenges such as ethical AI usage, data privacy concerns, and the risk of widening the skill gap between urban and rural workforces. Experts stress the need for robust AI governance policies to ensure equitable and sustainable growth.