AI’s Impact on India’s Infotech Sector

• Tata Consultancy Services’ announcements have caused anxiety in the Indian tech sector.

• The IT industry, which generates $280 billion in revenue and employs over 5.8 million people, is at a crossroads.

• AI-driven transformation is sweeping through software development and IT services, requiring a re-evaluation of business models and talent strategies.

• AI-powered coding assistants, code generation tools, and intelligent debuggers are enabling productivity boosts.

• AI in software testing is a game-changer, minimizing human error and enhancing test results accuracy.

• In 2025, over $1 trillion is expected to be spent globally on AI infrastructure, model training, and application development.

• Large global firms face challenges like legacy infrastructure, poor-quality data, and fragmented systems.

• With global AI regulations like the EU’s AI Act, companies must demonstrate responsible AI usage, privacy compliance, and algorithmic fairness.

• Indian IT can play a pivotal role in the AI Era by helping global clients clean and organize data.

• The future of India’s IT services industry will be built by lean, AI-native small firms solving complex problems