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Indian IT Set for strong 2026 rebound on AI demand
The Business Guardian
|December 10, 2025
After three years of muted growth, the Indian IT services industry is poised for a sharp recovery beginning 2026, driven primarily by accelerating demand for artificial intelligence (AI) services, according to a sector thematic report by HDFC Securities Institutional Equities.
IT firms have transitioned from traditional digital transformation projects toward Al-centric engagements, with AI deals now forming nearly 74% of all contracts signed in the last six quarters, the report said.Companies such as TCS, Infosys, HCLTech, Wipro, LTIMindtree and Tech Mahindra reported that the majority of their recent contract wins were focused on generative AI, agentic AI, machine learning and AL-ed automation.”The enterprise spending recovery is evident across multiple verticals such as BFSI, manufacturing, retail, hi-tech, and healthcare, with BFSI tech spend showing resilience and manufacturing experiencing a robust turnaround after stagnation,” HDFC Securities said.Global enterprise commentary suggest
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