In a bold call to action, the CEOs of Infosys and HCLTech have urged the IT industry to rethink its traditional business models in response to the disruptive impact of artificial intelligence (AI).
Speaking at the Nasscom Technology and Leadership Forum 2025, Infosys CEO Salil Parekh and HCLTech CEO C Vijayakumar emphasized the need for a fundamental shift in how IT services are delivered and monetized.
Their remarks come at a time when AI is rapidly transforming the industry, challenging long-standing practices and creating new opportunities for innovation.
At the forum, Vijayakumar highlighted the urgency of the situation, stating that the traditional IT business model, which has been in place for the last 30 years, is now ripe for disruption.
He pointed out that some teams are already delivering twice the revenue with half the people, thanks to AI-driven efficiencies.
This shift, he argued, necessitates a reevaluation of how IT companies operate and generate revenue.
Impact of AI on IT Services: Need for Proactive Strategies
AI’s ability to automate coding and various software development tasks is shortening project timelines and increasing efficiency.
Vijayakumar cited an example of a large financial services firm with a $1 billion technology transformation program.
Initially planned for five years, this program could now be completed in just three-and-a-half years due to AI-driven efficiencies.
This level of disruption, he noted, is far more significant than past technological shifts like cloud computing and digital transformation.
Infosys CEO Salil Parekh echoed Vijayakumar’s sentiments, stressing the importance of not becoming complacent.
He described AI as a massive productivity development tool that is bringing in new work that otherwise wouldn’t have been possible.
Salil emphasized the need for IT companies to stay vigilant and adapt to the rapidly changing landscape. He urged them to find new ways to deliver value to their clients.
Role of Indigenous Language Models, Challenges and Opportunities
Vijayakumar also called for the development of indigenous language models to reduce reliance on foreign AI infrastructure and mitigate geopolitical risks.
He warned that open-source language models might not remain open-source indefinitely and could become “coins for geopolitical exchange.”
He argued that this underscores the need for India to invest in its own AI training infrastructure. This investment is crucial for staying competitive in the global market.
The CEOs’ remarks come at a time when the IT industry is facing several challenges.
While AI is hitting the core of the industry with its automation and code generation capabilities, technology demand has not fully recovered. It has been depressed for two years.
Additionally, the feared tariffs by the Trump administration on IT services could pose another blow to the sector.
Despite these challenges, AI presents a clear revenue tailwind, offering new opportunities for growth and innovation.
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