IT Services
Reporting, analysis and features from AIM's IT Services section.
HCLTech Didn’t Want Data Centres. Then AI Changed the Math
HCLTech is breaking from its asset-light playbook to own AI data centre infrastructure, betting that a full-stack model can deliver higher returns.
Ajay Rag ·
Chandra’s Exit Brings a Rare Moment of Uncertainty for Tata Group
N Chandrasekaran’s exit has unsettled investors at a critical juncture for the Tata Group, raising fresh questions over succession, capital allocation and the conglomerate’s future direction.
Ajay Rag ·
Mid-Tier Firms Again Beat Indian IT Majors in Q1—But With a Catch
While acquisitions boosted Coforge, Mphasis and Persistent delivered stronger organic momentum, with AI emerging as a key growth driver across the segment.
Ajay Rag ·
Hang Ten Systems CTO Believes AI Cannot Replace Some Indian IT Assets
AI is forcing India's IT services industry to rethink the people-based billing model that has powered its growth for three decades.
Ajay Rag ·
Indian IT Stocks are Booming Again—And it Has Nothing to Do With Indian IT
Indian IT stocks are surging, but analysts warn the rally is running well ahead of the fundamentals.
Ajay Rag ·
TCS, HCLTech Think Data Centres are the Next IT Frontier. Infosys Disagrees
Two of India's top three IT services companies are betting on becoming data centre operators. Infosys has looked at the same opportunity and walked away for now.
Ajay Rag ·
Indian IT Can Finally Measure AI Revenue, But the Numbers Don't Stick
India's largest IT services firms have begun attaching hard revenue numbers to AI, revealing a business that's growing rapidly but still too small to offset slowing traditional IT spending.
Ajay Rag ·
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 ·