AI to expand, not reduce role of India’s IT services sector: Nasscom

New Delhi, June 26 (IANS) Artificial intelligence (AI) 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

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