India's IT firms post record growth despite AI headwinds
· Business · Financial Times, LiveMint
India's outsourcing sector posted $254 billion in revenue for fiscal 2024, a 3.8% increase from the previous year, defying widespread fears that artificial intelligence would disrupt traditional business process services. Major firms including TCS, Infosys, and Wipro reported stronger-than-expected deal wins in the second quarter, driven by demand for digital transformation and cloud migration projects. The growth came even as clients accelerated adoption of generative AI tools, prompting Indian IT companies to pivot their service offerings toward AI implementation and integration. Mumbai and Bengaluru remained the primary hubs for the sector's expansion, employing nearly 5 million professionals across the country.
Why it matters
The sector's resilience reassures India's $250-billion IT industry about its continued relevance in an AI-driven economy, sustaining millions of jobs and tax revenues while compelling firms to upgrade workforce skills.
Read the original report — Financial Times
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