Indian IT Leaders Hold Firm Against Agentic AI Storm: A Strategic Pivot

The India AI Impact Summit has emerged as a critical stage for the $250 billion Indian IT services sector to redefine its value proposition in the face of 'agentic AI'—autonomous systems capable of performing multi-step tasks without constant human intervention. For decades, the industry thrived on labor arbitrage and manual coding; however, the rise of Large Language Models (LLMs) has sparked fears that the traditional software services model could be rendered redundant. Leaders from the nation’s top firms, including Tata Consultancy Services (TCS), Infosys, and HCLTech, are now mounting a coordinated defense, arguing that the complexity of global enterprise infrastructure remains a formidable barrier to total automation.

K Krithivasan, CEO and Managing Director of TCS, articulated a vision where the role of the system integrator becomes more, not less, essential. He noted that while LLMs can generate code with unprecedented speed, they lack the contextual understanding required to navigate the labyrinthine legacy systems that power global banking, retail, and manufacturing. Krithivasan dismissed the notion of a 'significant shrinkage' in the industry, suggesting instead that the workforce will pivot from being builders of code to being validators of AI-generated output. This shift implies a fundamental change in the IT labor market: the demand for entry-level coders may soften, but the need for high-level architects who can ensure cybersecurity, ethical alignment, and system reliability is expected to surge.

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Salesforce’s South Asia CEO, Arundhati Bhattacharya, provided a parallel defense for the Software-as-a-Service (SaaS) model.

Salesforce’s South Asia CEO, Arundhati Bhattacharya, provided a parallel defense for the Software-as-a-Service (SaaS) model. She argued that the value of SaaS has never been solely about the underlying code, which AI can now replicate. Instead, the true moat for SaaS companies lies in their deep understanding of business workflows, customer pain points, and the 'plumbing' of enterprise operations—governance, auditability, and observability. As agentic AI begins to act on behalf of users, the need for a structured environment where these agents can be monitored and governed becomes paramount. This positions SaaS platforms not just as applications, but as the essential operating systems for AI agents.

Infosys and HCLTech are also signaling a proactive stance. Salil Parekh of Infosys revealed that the company is currently assessing AI service opportunities across six specific domains, indicating a move toward specialized, high-margin AI consulting rather than generic maintenance. Similarly, HCLTech’s leadership is focusing on the productivity gains AI brings to the table. The consensus among these 'IT captains' is that while the 'time and materials' billing model may face pressure as productivity increases, the sheer volume of work required to modernize global enterprises for the AI era will offset any potential revenue loss from automation.

Looking forward, the short-term challenge for these giants will be the rapid upskilling of millions of employees. The industry is moving toward a 'human-in-the-loop' architecture where AI handles the heavy lifting of generation, while humans provide the critical oversight. Investors and market analysts should watch for how these firms restructure their contracts; a shift toward value-based or outcome-based pricing would signal a successful transition away from the legacy labor-intensive model. While the 'agentic storm' is undoubtedly disruptive, the leadership of India’s IT sector is betting that their deep-rooted relationships with Fortune 500 companies and their expertise in managing complex legacy transitions will keep them at the center of the global technology ecosystem.