India’s IT Industry Balances Growth and Workforce Challenges in AI Transition

India’s IT sector, long recognized as a global outsourcing powerhouse, is now facing a pivotal moment. The rapid adoption of AI-powered solutions is reshaping client expectations, forcing IT majors to pivot from traditional digital projects to advanced AI-driven services.

Key Highlights:

• AI-Centric Deals: Over 70% of IT contracts signed in the past six quarters are focused on AI services, including generative AI, agentic AI, and automation.
• Industry Leaders Responding: TCS, Infosys, Wipro, HCLTech, LTIMindtree, and Tech Mahindra report that most new contracts are AI-led.
• Global Context: The upcoming India AI Impact Summit 2026 in New Delhi will spotlight governance, inclusivity, and long-term AI strategies.
• Workforce Challenge: AI adoption raises concerns about job displacement, making reskilling and workforce adaptation critical.
• Strategic Opportunity: India can leverage AI to position itself as a global hub for innovation, moving beyond traditional outsourcing models.

This transition marks a turning point for Indian IT demanding agility, innovation, and workforce transformation to sustain its global leadership in the age of AI.

Sources: The Economic Times, The Indian Express, India AI Impact Summit