A Multi-Billion Dollar Opportunity
As companies worldwide move beyond simply experimenting with AI, they are discovering a critical need for partners who can implement, scale, and manage these complex technologies. This has opened up a significant new revenue stream for India's tech services
industry, which is already generating an estimated $10-12 billion from AI-related services, according to industry body Nasscom. This figure is expected to grow substantially. Nasscom projects that a specific segment, Agentic AI, could unlock an additional $300 to $400 billion in opportunities for tech services firms by 2030. Large firms are already seeing this translate into real numbers. Tata Consultancy Services (TCS) reported an annualized AI revenue run rate of $2.6 billion in its recent quarterly results, while Infosys has stated it is engaged in AI work with the vast majority of its top clients.
From IT Support to AI Orchestration
The nature of the work itself represents a major evolution for the Indian IT sector. The demand is shifting from traditional, labor-intensive tasks to more sophisticated services. Companies now need expert help with preparing vast amounts of data for AI models, modernizing applications to be AI-ready, and ensuring the responsible governance of these powerful systems. Infosys co-founder Nandan Nilekani has referred to this as bridging the “deployment gap” — the space between developing a powerful AI model and making it work effectively within a large, complex organization. This is where Indian firms, with their decades of experience managing the intricate technology landscapes of global corporations, find their new competitive advantage. The work involves orchestrating models, data platforms, cloud environments, and cybersecurity controls into a reliable operating model.
The Talent Pivot
This new demand requires a workforce with updated skills. While AI is expected to automate many routine coding and testing jobs, it simultaneously creates a need for professionals who can manage AI-led projects. Recognizing this, the Indian IT industry is heavily invested in training. According to Nasscom, the sector already has over 2 million professionals skilled in AI, with up to 200,000 trained in advanced capabilities. However, a recent Nasscom report also sounds a note of caution, warning of a gap between being merely “AI-proficient” and truly “AI-native.” The report highlights that only 23% of early-career tech professionals currently qualify as AI-native, meaning they possess the deep engineering judgment to go beyond just using AI tools. Closing this gap by strengthening fundamentals will be critical for long-term success.
New Strategies and Challenges
The opportunity is not without its hurdles. Indian firms face stiff competition from global consulting giants like Accenture and Deloitte. Moreover, the rapid pace of AI development means companies must constantly adapt. In response, firms are adopting diverse strategies. HCLTech, for example, is making significant investments in data centre infrastructure to handle the massive computing power AI requires. Infosys is forming strategic collaborations with leading AI model builders like Anthropic to deliver enterprise-grade solutions. At the same time, a weak global economy and cautious client spending on discretionary projects remain a concern. Success will depend on navigating these challenges while proving they can deliver tangible value and move up from being service providers to indispensable strategic partners.
