AI is beginning to make a dent in the business models of India\u2019s big four technology services giants<\/p>\n
Infosys, HCL, TCS, and Wipro have all announced quarterly results in the last ten days, and all had mixed news.<\/p>\n
HCL, for example, told investors annual revenue grew 11.2 percent for FY 2026, and headcount rose almost two percent. But the company also pointed to \u201cAI deflation\u201d that CEO C. Vijayakumar explained means future revenue will dip between three and five percent in the coming year, and perhaps further in the future.<\/p>\n
Infosys CEO Salil Parekh said he expects deflation to become a factor in the future, but predicted the company will continue to grow this year after last year brought 3.1 percent revenue growth.<\/p>\n
Wipro CFO Aparna Iyer pointed to lower margins in some deals, and a need \u201cto drive operational improvement that is a continuous process\u201d despite the company posting four percent annual revenue growth.<\/p>\n
TCS saw annual revenue slip 0.5 percent year-over-year and CEO K Krithivasan admitted he\u2019s also seeing deflation \u2013 which he called \u201cdegrowth.\u201d<\/p>\n
Krithivasan also said he believes AI will help the company to grow revenue over time, and pointed to new wins that use the tech<\/p>\n
\u201cFor an electronics manufacturer, in their fabrication facilities, we are integrating NVIDIA Omniverse-driven digital twins with autonomous quadruped-based inspection systems,\u201d he said on the company\u2019s earnings call. \u201cThis physical AI solution is driving better construction accuracy and proactively identifies safety hazards.\u201d<\/p>\n
His CEO peers had similar stories, related to winning deals involving AI tech or serving the AI industry.<\/p>\n
HCL\u2019s C. Vijayakumar pointed to the company winning a deal to use its in-house AI tools to modernize a European industrial engineering and manufacturing company\u2019s IT infrastructure and application estate. He also mentioned work at a \u201cUS subsidiary of a global memory semiconductor group that powers next-generation AI factories and hyperscale data centers worldwide\u201d which picked HCL for \u201cend-to-end firmware development and sustenance services, helping strengthen the reliability, performance and scalability of clients’ high-performance storage platforms.\u201d<\/p>\n
Infosys pointed to ugly footwear company Crocs using its AI to optimize operations and reduce costs. CEO Salil Parekh, however, said that most of the company\u2019s customers see AI as an opportunity to improve productivity.<\/p>\n
The four services giants all see agentic AI as essential to their futures, and are working to productize agents so they can make them part of their practices.<\/p>\n
Wipro\u2019s Aparna Iyer thinks AI can help her company \u201cto deliver our fixed-price programs better\u201d \u2013 which if executed successfully might just help to defray that deflation problem.<\/p>\n
The four services giants each employ over 200,000 people and their hiring and firing patterns are often considered an indicator of the sector\u2019s health. Headcount has moved by a few percent across the companies, but none has made swingeing job cuts to match those implemented by US tech giants as they try to cover the cost of investing in AI infrastructure and adopt the technology. \u00ae<\/p>\n","protected":false},"excerpt":{"rendered":"AI is beginning to make a dent in the business models of India\u2019s big four technology services giants…\n","protected":false},"author":2,"featured_media":555244,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-555243","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/555243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=555243"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/555243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/555244"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=555243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=555243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=555243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}