Indian IT Sector Poised to Benefit from AI Transition, Says Jefferies
Contrary to earlier fears that artificial intelligence (AI) might disrupt India’s information technology (IT) sector, recent analysis by Jefferies suggests the industry could emerge as a structural beneficiary of the AI revolution. While concerns about automation, revenue compression, and potential white-collar job losses initially dominated the narrative, new developments point to an expanding opportunity landscape, particularly in enterprise AI adoption and custom model deployment.
Enterprise AI And Strategic Partnerships Drive Growth
A notable highlight is the collaboration between US-based AI firm Anthropic and Infosys to develop tailored AI agents for enterprise clients. Jefferies emphasized that the partnership signals strong demand for “small language models” trained on proprietary corporate data, an area where Indian IT firms can integrate and migrate enterprise systems. Corporates are increasingly showing preference for domain-specific, in-house AI solutions rather than relying solely on large, general-purpose models, creating a unique growth avenue for IT service providers.
Infosys Leads AI Adoption Among Top Clients
AI adoption is accelerating among large Indian IT clients. Around 90% of Infosys’s top 200 customers are actively using its AI-related services, indicating that AI integration is moving from pilot programs to full-scale deployment. Jefferies noted that AI-led services pipelines could mitigate macroeconomic risks by sustaining demand and employment in the sector, which currently employs around 5.8 million people.
Expanding Market for AI Transformation Services
The shift toward AI-enabled transformation services, including Infosys’s recently unveiled “AI First” offerings, significantly expands the addressable market. Jefferies estimates that AI-led services in India could reach USD 300-400 billion by 2030. With enterprise AI adoption and customized model deployment gaining momentum, the Indian IT sector may not only preserve its market relevance but also play a central role in enabling AI transformation globally.
(This Article Has Been Syndicated From ANI)
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