AI to expand, not reduce role of India's IT services sector: Nasscom
New Delhi, June 26
Artificial intelligence will strengthen rather than diminish the role of India's technology services sector, creating new opportunities in enterprise modernisation, data, cybersecurity and AI governance, apex industry body Nasscom said on Friday.
According to the industry body, AI should not be viewed only through the lens of automation.
While it is expected to improve productivity and automate repetitive tasks, it will also drive demand for application modernisation, data readiness, AI governance, cybersecurity, agent management and industry-specific digital solutions.
It further noted that nearly 25 per cent of technology services companies have already moved AI initiatives from pilot projects to production.
India's technology services sector is currently generating an estimated $10-12 billion in AI services revenue, with more than 2 million professionals skilled in AI and between 100,000 and 200,000 trained in advanced AI capabilities.
It added that around 85 per cent of technology service providers now have agentic AI platforms, positioning the sector to support enterprises as they move towards large-scale AI deployment.
Nasscom US CEO Forum Chair Ravi Kumar S said the next phase of AI adoption would be driven by enterprises seeking to convert AI capabilities into business value through secure deployment, workflow redesign, governance and change management.
Meanwhile, Nasscom President Rajesh Nambiar said Indian technology services companies have successfully guided global enterprises through multiple technology transitions over the past three decades and remain well-positioned to help businesses deploy and scale AI responsibly.
In addition, the industry body has estimated that Agentic AI could unlock an additional $300-400 billion in addressable spending for the global technology services industry by 2030 across areas such as AI-ready data, legacy modernisation, AI operations, cybersecurity, governance and intelligent workflows.
— IANS
Reader Comments
I'm cautiously optimistic. While the $10-12 billion revenue is impressive, we need to ensure that the training programs reach tier-2 and tier-3 cities too. Not everyone can access advanced AI training in metros. The 2 million skilled figure is good, but let's see how many actually get high-value roles. 🤔
Interesting that Nasscom mentions "agentic AI" - this is the first I'm hearing about it creating $300-400 billion in addressable spending. But I wonder if the Indian education system is preparing enough graduates with the right AI skills. We need more focus on practical implementation rather than just theory.
Honestly, I'm still skeptical. Every time a new technology comes, they say jobs won't be lost, but we saw what happened with automation in manufacturing. The IT sector needs to be transparent about which roles will be most affected and prepare reskilling programs NOW, not later. Hope Nasscom walks the talk on governance.
As an expat working in Bangalore's tech scene, I've seen Indian IT firms adapt remarkably well to past transitions. The emphasis on AI governance and secure deployment is crucial - many Western clients are nervous about AI risks. If India can position itself as a trusted AI partner, this could be a huge opportunity.
Good to hear, but I wish they'd also talk about ethical AI and bias. Indian companies building AI for global clients need to ensure our diverse population's perspectives are included in training data. Otherwise we're just copying Western models. The "responsible AI" mention is a start,
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.