AI Breathes New Life Into Legacy Business For Indian IT Giants

Image Source: ET CFO

Artificial Intelligence is revitalizing legacy operations for top Indian IT firms like TCS, Infosys, and Wipro. As clients modernize systems, demand for AI-led automation and software upgrades is surging. While this boosts traditional revenue streams, experts caution the trend may shift as foundational AI adoption grows.

Legacy tech gets an AI makeover

India’s leading IT firms are witnessing a surprising resurgence in their legacy business segments, thanks to Artificial Intelligence. Companies like Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech are reporting increased demand for software modernization and AI-driven automation. These services, once considered outdated, are now being reimagined with intelligent platforms that streamline operations and reduce costs.

Clients across sectors are opting to upgrade legacy systems rather than replace them entirely, using AI to enhance functionality, improve data processing, and integrate cloud capabilities. This shift is helping Indian IT firms maintain stable revenues from traditional service lines while positioning themselves as transformation partners.

Short-term boost, long-term pivot

While AI is currently boosting legacy business, industry analysts suggest this may be a transitional phase. As enterprises become more comfortable with generative AI and foundational models, the focus may shift toward building new digital ecosystems rather than retrofitting old ones. Indian IT firms are already investing in AI-native solutions, upskilling talent, and diversifying offerings to stay ahead.

Hiring trends reflect this pivot. Mass fresher recruitment is slowing, replaced by specialist hiring in AI, cloud computing, and cybersecurity. Firms are also launching internal AI platforms to automate delivery and reduce human dependency in routine tasks.

Key highlights from India’s AI-led IT evolution

- AI is driving demand for legacy system modernization across industries
- TCS, Infosys, Wipro, and HCLTech report growth in traditional service lines
- Clients prefer upgrading legacy tech with AI rather than full replacement
- Software automation and cloud integration are key drivers
- IT firms are investing in AI-native platforms and talent upskilling
- Specialist hiring in AI and cybersecurity replaces mass fresher intake
- Analysts predict a shift toward foundational AI and new digital ecosystems
- Legacy boost seen as short-term gain amid long-term transformation

Sources: JustDial News, Business News Today, Economic Times CIO