AI is taking over core operations of Indian IT companies

AI is taking over core operations of Indian IT companies

https://www.cnbc.com/2026/01/15/cnbcs-inside-india-newsletter-ai-is-taking-over-core-operations-of-indian-it-companies.html

Publish Date: 2026-01-15 03:16:00

Source Domain: www.cnbc.com

Here are the key points from the CNBC’s “Inside India” newsletter on the growing integration of artificial intelligence in India’s IT sector:

1. AI Integration across IT Firms: Major Indian IT companies like Tata Consultancy Services (TCS) are increasingly integrating artificial intelligence into their core operations, with more than a third using AI for 40% of their operations.

2. Skill Development Focus: TCS is training all its employees, increasing its AI-skilled workforce to 217,000 from a mere 180,000, highlighting the sector’s shift towards AI fluency. It’s keen on hiring young “AI natives” who are adept with modern AI tools.

3. Future Workforce Projection: According to Nasscom and Indeed, almost all IT firms expect work to be done by teams comprising humans and AI by 2027, with AI commonly leading these teams.

4. Skills Challenge: The rapid evolution of AI technologies poses a challenge in terms of employees’ ability to upskill quickly enough. The demand for AI-capable workers is rapidly outpacing the supply, presenting a talent gap.

5. Government’s Role: India’s Niti Aayog suggests a proactive approach to AI upskilling can help bolster the IT sector job count to 10 million, counteracting potential declines due to skill mismatches and AI integration.

6. Job Market Dynamics: Although firms like TCS are reducing staff due to skill mismatches primarily connected to the rising importance of AI, analysts like Ravi Menon predict a future uptick in IT hiring driven by AI adoption.

7. Consumer Sector Optimism: Goldman Sachs’ Arnab Mitra suggests that 2026 will see an earning cycle revival in India, particularly in the consumer sector, encouraging investment rotation.

8. Revenue Forecast Increase: Infosys, one of the leading Indian IT service companies, has raised its revenue growth forecast for financial year 2026 to between 3% and 3.5% in constant currency terms from previously estimated 2% to 3%.