AI Powers Indian IT Giants Amidst Muted Quarter, Driving Growth and Reshaping Industry

• Indian IT giants experienced a largely muted December quarter, but AI emerged as a significant growth driver, shifting from experimentation to operational deployment.
• Companies like TCS, Infosys, and HCLTech reported substantial growth in AI-related revenues, outpacing their core business growth.
• AI is reshaping deal pipelines, delivery models, and hiring priorities, with project teams becoming leaner and more skill-dense.
• While pure-play AI revenue is still a small percentage of overall IT services, AI is increasingly embedded across all services, making attribution challenging.
• Hiring is shifting from volume to value, with high demand for specialized AI roles, though high fresher salaries are limited to a small percentage.

Why It Matters: AI is transforming the Indian IT sector, driving growth and efficiency despite a challenging overall market.