AI may redraw India’s IT services map; 20-25% firms could struggle to cross over, says Nasscom chief

Rajesh Nambiar

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Sanjana B _12135

India’s technology services industry may be facing a painful transition, but the underlying demand remains robust, with order books, future signings and deal pipelines continuing to strengthen, according to National Association of Software and Services Companies (Nasscom) President Rajesh Nambiar.The bigger question, however, is whether all companies will be able to adapt to an AI-led business model. Nambiar estimates that 20-25 per cent of technology services companies may not make the crossover from the traditional Full Time Equivalent (FTE)-led model to one driven by AI, productivity and business outcomes.“The industry will survive. The answer is yes, I think the industry can move. Will all the players in the industry make their transition? Maybe not,” Nambiar told businessline.

Rajesh Nambiar