Disruptive Times in Indian IT: A Shift Toward a Platform-Based Paradigm

In an industry steeped in tradition yet facing unprecedented challenges, top Indian IT leaders are heralding a new era. CEOs from HCLTech and Infosys, among others, are advocating for a revolutionary shift from a people-focused model to one that leverages automation and operational efficiency. With a market valued at around $250 billion, the IT sector is now poised to transition from linear growth strategies to agile, output-based methodologies.

A Revolutionary Business Model

C Vijayakumar, CEO of HCLTech, emphasized that the industry must now rethink its long-standing practices. "I strongly believe that the business model is ripe for disruption," he stated. For decades, revenue and workforce expansion went hand in hand; however, recent years have witnessed an urgent need to double revenue with half the manpower. This strategic pivot highlights a growing dependence on platform-based services rather than traditional, people-centric models. The emergence of "service-as-a-software" is rapidly transforming the operational landscape, integrating automation deep into the core of IT services.

AI: The Game-Changer

Parallel to this transformation is the accelerating influence of artificial intelligence. Salil Parekh, CEO of Infosys, noted that AI is not just a productivity enhancer but a catalyst for new opportunities. As companies in the IT sector integrate AI into their workflows, previously unimaginable projects are now within reach. However, amidst these promising advancements lies the looming uncertainty of geopolitical factors like potential tariffs, especially those from the US, which historically have played a significant role given the industry's heavy reliance (approximately 60-62%) on the US market.

Navigating Global Challenges

Industry experts such as Nasscom President Rajesh Nambiar have underscored the double-edged nature of current global trends. While agentic AI ushers in significant revenue opportunities, the impact on headcount remains a concern. The unpredictable environment—exemplified by policy shifts and trade barriers—adds to the complexities of sustaining and expanding global IT services.

Workforce Evolution and Skill Adaptation

The conversation around disruption extends to workforce dynamics. DBS, a leading financial services corporation, anticipates a 10% reduction in its workforce over the next three years—a move driven by deeper AI integration. This sentiment is echoed by industry leaders like TCS CTO Harrick Vin, who highlighted the rapidly diminishing shelf-life of traditional skills. In today’s fast-evolving tech sphere, professionals may need to re-skill every five years, placing a premium on soft skills such as creativity, adaptability, and resilience.

The Open-Source Debate and Future Prospects

Amid these sweeping changes, the debate over foundational versus proprietary AI models is intensifying. Vijayakumar warned that open-source platforms, which have enabled significant advancements to date, may no longer remain free from geopolitical influences. As AI continues to shape global power dynamics, companies must prepare for a future where innovation and regulation intertwine.

The narrative is clear: the Indian IT sector is on the cusp of a transformative period. With the integration of AI and a move towards platform-centric business models, the industry is set for a disruptive yet promising future. As these changes unfold, companies, employees, and policymakers alike will have to navigate a landscape that demands agility, creativity, and forward-thinking strategy.

In this rapidly changing environment, one thing remains certain—disruption is not a distant possibility but an imminent reality. The challenge lies in harnessing this change to foster sustainable growth and innovation.