AI to drive growth in tech services, concerns over disruption unfounded: NASSCOM VP
New Delhi, July 30
Concerns that artificial intelligence could disrupt India's technology services industry are unfounded, with the sector already adapting to changing client needs and AI expected to create significant business opportunities, NASSCOM Vice President and Head of Global Trade Development Shivendra Singh toldon Thursday.
Speaking to ANI on the sidelines of an Indo-German Chamber of Commerce (IGCC) event, Singh said the technology services industry had responded strongly to the rapid emergence of AI and was well placed to benefit from the transformation.
"There are a lot of stories around AI and the decline for the tech services industry... I think all this is unfounded because the industry has pivoted very strongly with the needs of the hour," he said.
Singh said AI adoption would generate new demand for technology services companies, rather than simply eliminate existing business.
"Our view is while the sequencing of AI in jobs will not be there as far as the industry is concerned from a revenue sequencing perspective, what will happen is there is going to be growth in the business, which is going to be quite high as a result of AI and we'll be well positioned to be able to deliver, to meet client requirements," he said.
He said enterprises would need technology services firms to help select AI models, determine deployment strategies and establish the right balance between automation and human oversight.
"No one will just put a language model and hope the magic will happen. You need someone to decide which language model, how many language models, whether it's going to be SLMs, how much of agentic you need, how much of human role you need. So this work is done by the tech services companies," Singh said.
On India-Germany economic cooperation, Singh said the two countries had strong complementarities in advanced manufacturing, precision engineering, digital transformation, talent and AI.
"There are very strong tailwinds favouring a stronger collaboration between Germany and India. Germany's Industry 4.0, advanced manufacturing, precision engineering, India's digital transformation and talent story are a very good fit to build this partnership," he said.
Singh also highlighted NASSCOM's role in the India-Germany AI Pact and the AI for Mittelstand initiative, aimed at supporting AI adoption among German small and medium-sized businesses.
He said NASSCOM would further its engagement with German stakeholders through programmes in cities including Berlin, Munich, Hamburg and Cologne in September.
On the growing Global Capability Centre (GCC) ecosystem, Singh said India was witnessing a shift from a cost-arbitrage model towards innovation and revenue generation. GCCs contribute nearly USD 100 billion in revenue and employ around 2.3 million people, he said.
He added that growing investments in AI-native companies, data centres and digital capabilities would further accelerate the segment.
On satellite communications, Singh backed greater participation by private startups and stressed closer government-industry cooperation.
"I think this is something which should be encouraged. At the end of the day, in any evolving and emerging areas of technology, the government and the private sector have to work very, very closely to ensure that India gets the kind of share that it truly deserves," he said.
— ANI
Reader Comments
I'm cautiously optimistic. I work at a US-based MNC with a big Indian operations team, and we're already seeing changes. But the VP's point about needing help choosing between language models and balancing automation vs human oversight is spot on. That's exactly where Indian IT firms excel — execution and customization. Let's see if the reskilling keeps pace though.
My concern is for the entry-level employees. Yes, AI will create new opportunities, but what about the thousands of freshers who were getting hired for basic coding and support roles? The industry needs to be more transparent about how many jobs will actually be lost vs created. NASSCOM should focus on skilling initiatives for Tier 2 and Tier 3 cities too. Otherwise, it's just corporate optimism.
Interesting perspective. As someone who moved from India to the UK for tech, I see both sides. The India-Germany collaboration on AI for Mittelstand is a smart move — German SMEs have deep engineering expertise but need the digital transformation support that Indian firms can provide. It's a win-win if executed well. But we really need to push more R&D from India, not just services.
I've been in IT for 20 years and have seen many such "disruptions" — Y2K, dot-com bust, cloud computing, now AI. The industry always pivots. What matters is whether our education system and corporates are preparing the next generation with the right skills. NASSCOM should partner more with IITs and NITs to build AI curriculum. And yes, the satellite comms point is very important — private startups need government support like ISRO provided. 🚀
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