IT Sector

Experts attribute the rise of AI tools for the cautious hiring, as the technology's wide adoption is hurting the business of tech services providers.

Big pay packets are being offered to tech professionals who have a close understanding of what clients actually need for productive AI adoption. Indian IT service companies like TCS are thus in a hurry to create forward deployment units.

In FY26, Wipro generated about $100 million in annual revenue from Meta, which is among the IT services company’s 20 largest accounts. Wipro is now expected to generate about $75 million in annual revenue from Meta after the social media company ended outsourcing for its digital marketing work.

Shares jumped nearly 10% as an executable order book of $2.23 billion and AI-driven efficiency gains paved the way for earnings upgrades.

Rising hardware costs are forcing IT firms to rethink pricing, with top executives wary of offering blanket discounts that could erode operating margins.

The earnings reports of IT firms like TCS, HCLTech and Accenture show that revenues are outpacing headcounts. But what the numbers don't show is how intimately IT firms grasp what they produce—and how that will impact their future.

The US cafe chain's adoption of AI to manage its systems is bad news for Indian IT service providers like TCS and HCL Tech, whose latest results have been unimpressive and future looks clouded. Such companies need to wake up and smell the AI coffee.

India's IT bellwether says it is generating up to 15% AI-led cost savings and passing the productivity gains to clients in phases.

By deploying AI-native software to displace legacy corporate systems, the startup is expanding into back-office processes after realizing that simple voice bots offer limited long-term impact for enterprises.