For some time now, one discussion has been heard the most in the technical circles, will Artificial Intelligence (AI) swallow India’s IT sector? Many experts have even predicted the demise of this industry by 2030. But CEO of Tata Consultancy Services (TCS), the country’s largest software company, K. Kritivasan completely rejects these claims. He believes that the Indian IT sector is not only secure, but its need is going to increase even more in this era of AI.
During a recent interview, Kritivasan said in a very frank manner that for the last several decades, ‘Obituary’ of the Indian IT sector has been written every 10 years, but every time this industry has proved its strength. According to him, the strength of Indian companies is not just low cost (cost arbitrage) but the depth of talent and skills they possess.
Will the glory of Indian IT end by 2030?
When Kritivasan was asked whether IT services would really collapse by 2030, he clarified that the picture is quite the opposite. In today’s era, as fast as AI technology is developing, companies are not able to adopt it as fast. To fill this gap, clients will have to take help from experienced companies like TCS. With the advent of AI, work will not end, but the way of working will change.
The company’s Chief Operating Officer (COO) Aarti Subramaniam also believes that advanced AI systems like Claude Cowork and Claude Mythos are not a threat but a big opportunity for TCS. According to him, AI will prove to be the biggest weapon in modernizing legacy systems.
TCS’s morale is high despite decline in revenue
For the first time since its listing in 2004, TCS has registered a decline of 2.4% in its annual revenue. In the last three years, the decline in tech spending across the world and economic uncertainties have affected this sector. The IT index has also fallen by about 20% in the last one year. But despite this, TCS leadership is very excited about the coming financial year 2027.
Kritivasan said that this decline in revenue was due to the completion of a big project, but after that growth has been seen in three consecutive quarters. The company currently has a huge order book of $40.7 billion (FY26), which shows that the confidence of companies around the world is still intact. Despite the ongoing tension in Gulf countries, mega deals are being signed, which is proof of the strength of Indian IT.
Coding became easier with the advent of AI
Nowadays there is talk that with the advent of AI, coding has become easier and less employees will be required. Aarti Subramaniam admitted that with the help of AI tools, productivity has improved by 15% to 30%. Although this may lead to a slight deflation in the value of existing contracts, TCS is balancing this through new projects. Interestingly, the company’s annual revenue from AI has crossed $2.3 billion.
TCS has also given positive signals on the jobs front. While last year the company had reduced the workforce by 2%, 44,000 trainees have been appointed in the financial year 2026. 25,000 offers have been made for the next cycle also. This means that the phase of retrenchment is now behind and the company is again focusing on adding talent.