IT Services
Reporting, analysis and features from AIM's IT Services section.
AI Now Makes Up 8% of Infosys’ Revenue. But Is That Enough?
The company wants investors to focus on AI’s growing contribution to revenue. But a guidance cut, slowing demand and pricing pressure suggest its broader growth trajectory still depends far more on its legacy business than its fast-growing…
Ajay Rag ·
Why India's IT Giants are Swapping Bloated LLMs for Small Language Models
Infosys, HCLTech, and TCS think the real enterprise AI opportunity lies in small language models, which are cheaper to run and can offer data sovereignty.
Ajay Rag ·
Inside Indian IT's Scramble to Build an Army of Forward Deployed Engineers
Forward deployed engineers are emerging as Indian IT's latest strategic bet, as the industry vows to stay relevant in the AI value chain.
Ajay Rag ·
Wipro Says AI is the Future, But Legacy Drag Keeps Growth and Margins in Check
CEO Srini Pallia said AI is creating new spending opportunities even as it compresses traditional IT budgets.
Ajay Rag ·
HCLTech's AI Infrastructure Play Can Redefine the Limits of Indian IT
HCLTech's AI strategy shows Indian IT is moving beyond software services, betting on compute infrastructure, sovereign AI, and specialised talent.
Ajay Rag ·
LTM is Over AI Pricing Reset. It's More Worried About AI Deployment
LTM is betting that investing early in forward-deployed engineers will position it for the next phase of AI services growth.
Ajay Rag ·
Forward Deployed Engineers are Testing Indian IT, Not Replacing It
As Microsoft and OpenAI ramp up enterprise deployment teams, Indian IT stocks have priced in disruption. But executives say the real test is whether Indian IT can move up the value chain before AI commoditises its core business.
Ajay Rag ·
TCS's $2.6 Billion AI Business Still Lacks an Annuity Engine
TCS's $2.6-billion AI business is growing rapidly, but most engagements last only one or two quarters, making revenue far less recurring than traditional IT outsourcing contracts.
Ajay Rag ·
Indian IT Braces for Soft Start to FY27 as AI Margins Remain a Mirage
Analysts expect a muted start to FY27 as Indian IT’s enterprise spending remains cautious, while AI is yet to generate meaningful high-margin revenues.
Ajay Rag ·
As AI Cannabilises Revenue, Indian IT Looks to Cybersecurity for Margins
As generative AI automates coding, Indian IT firms are racing to build cybersecurity capabilities through acquisitions, partnerships and AI-native platforms.
Ajay Rag ·
Indian IT's First 6 Months of 2026 Were Brutal, But H2 May Be Worse Still
Six months of AI anxiety, record foreign selling, aggressive M&A, and a shrinking Nifty footprint have left India's $315-billion technology machine looking for its next big opportunity.
Ajay Rag ·
Persistent’s Nagarro Gambit & the Billion Euro Bet on an AI-Driven Future
Persistent’s biggest acquisition to date is a strategic wager that scale, European incumbency and deeper enterprise relationships will matter more than ever in the AI era.
Ajay Rag ·
Indian IT Wants to Break From Its US Addiction. But It's Harder Than It Looks
Indian IT firms are piling up non-US wins. But after decades of American dependence, the numbers reveal a sector that is moving, just not fast enough to outrun the risk it is trying to hedge.
Ajay Rag ·
If AI Can't Accelerate Accenture’s Growth, Does it Leave Hope for Anyone Else?
AI bookings are surging at Accenture, yet it has cut growth guidance as demand remains uneven.
Ajay Rag ·
Indian IT is Tearing Up Its Billing Manual, But Unsure What to Charge Next
As AI strips away the visible effort behind a line of code or a closed ticket, Indian IT is busy figuring out whether outcome-based pricing is the best fit.
Ajay Rag ·
Indian IT Once Feared GCCs. Now, it is Racing to Monetise GCC-as-a-Service
GCCs are evolving into a major growth strategy as IT firms seek new revenue pools in building and running AI-native captive centres.
Ajay Rag ·
AI is Eating Away at Indian IT's Old Business. Can it Rewrite Enterprise Playbook?
From Mistral tie-ups to proprietary agentic platforms, India's technology services majors are racing to reinvent themselves for the AI era.
Ajay Rag ·
Why N Chandrasekaran Wants TCS to Have as Many AI Agents as Employees
With AI revenues nearing $2.5 billion annually and growing at 22% every quarter, TCS Chairman N Chandrasekharan says AI is the 'most significant opportunity' in the company's history.
Ajay Rag ·
Indian IT Loses 25% of Its Value in 6 Months as AI-Led Repricing Adds Pressure
From a high of close to 40,000 to below 29,000, the Nifty IT index has shed nearly 29% since the beginning of this year.
Ajay Rag ·
LTTS Says AI-Native Workflows Could Shrink Middle Layers in Engineering Teams
‘Future engineering teams could evolve towards smaller, agile structures as AI tools become more deeply integrated into software development and engineering workflows’.
C P Balasubramanyam ·