India’s largest software exporter Tata Consultancy Services thinks that the Indian information technology (IT) sector is still resilient in the face of the threat posed by artificial intelligence (AI).
The Indian IT sector grew not because of cost arbitrage but because of the depth of skill sets, the company’s chief executive officer K Krithivasan was quoted as saying by The Economic Times.
“We have been writing its (Indian IT sector’s) obituary every 10 years, but I think Indian IT services have proven to be very resilient,” Krithivasan said.
He said that foreign enterprises will need the support of companies like TCS to take full leverage of technologies like AI, dismissing fears of the IT services industry going obsolete by 2030.
Krithivasan’s statement comes at a time when his company has posted a decline in revenue in constant currency terms for the first time since its public listing in 2004.
The decline came even after strong deal momentum during the year. According to industry experts, the “high deal momentum, slower revenue growth” phenomenon is going to pick up pace as clients demand deployment of AI with limited human efforts.
However, the company’s chief operating officer Aarthi Subramanian said that TCS looks at AI systems like Claude Cowork and Claude Mythos as “big opportunities” instead of a threat.
TCS said last week that it clocked the highest total contract value (TCV) ever, with three large deals for the March quarter and five for the year. TCV was $40.7 billion in FY26 and $12 billion in the fourth quarter.
“Customers are actually becoming more confident in investing in their projects, and the decision-making cycle is improving,” Krithivasan said.
He also claimed that the company has not seen any major slowdown in deal closures despite the Gulf war.
“We have not seen any delays in decision-making. In fact, some of the (mega) deals were signed in the last one month,” he said.
