Mumbai: The three-decade-old business model of the Indian IT industry is becoming obsolete due to artificial intelligence (AI), according to HCL Technologies’ CEO C Vijayakumar. Speaking at the Nasscom Technology and Leadership Forum (NTLF), he urged companies to embrace AI-driven automation or risk becoming irrelevant.
AI’s Impact on the IT Industry
Vijayakumar emphasized that IT growth has traditionally been linked to workforce expansion, but this approach is no longer viable.
- “The business model is ripe for disruption. The time is already up for linear scaling of revenue and people,” he said.
- HCL has been challenging employees to double output with half the workforce, underscoring the urgency of AI integration.
- He called for greater AI-driven automation to enhance efficiency and competitiveness.
A Shift from Workforce-Based to AI-Driven Models
Vijayakumar urged IT firms to move away from traditional people-based service models.
- AI will streamline operations and reduce workforce dependency.
- Companies must transition to platform-based solutions.
- Indian firms should focus on developing indigenous AI models instead of relying on global providers.
Industry Leaders Weigh In
Infosys CEO Salil Parekh agreed that IT companies must evolve to remain relevant.
- He emphasized shifting from input-driven to output-based service models.
- AI and automation must replace human-centric delivery in many IT services.
AI-Driven Growth and Acquisitions
- Infosys is seeking major acquisitions to boost AI capabilities.
- HCL focuses on homegrown AI development rather than expansion through acquisitions.
- Vijayakumar cautioned that revenue growth alone is not enough—innovation is key to long-term survival.
Future of IT: AI-Led Transformation
The NTLF discussions highlight the need for rapid adaptation to AI.
- AI-driven automation will redefine IT services.
- Early adopters will gain a competitive edge, while traditional models may struggle.
- Employees must upskill in AI and automation to stay relevant.
Conclusion
Vijayakumar’s remarks underscore a crucial shift in the IT industry. Companies that fail to embrace AI and automation risk falling behind, while those that innovate will thrive in this new era of technology-driven transformation.
