Shift from Traditional Outsourcing to AI

IT services companies are transitioning from traditional outsourcing to an Al-first model driven by the need to move beyond labour-intensive services, address margin pressures, and provide clients with future-ready solutions

- AYUSHMAN BARUAH

India's leading IT services providers - Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro-are rapidly shifting from traditional outsourcing models to AI-centric approaches in response to changing client expectations and intensifying global competition.

As businesses globally are seeking greater efficiency, innovation, and digital transformation, these IT firms are embedding artificial intelligence (AI) across their offerings to deliver enhanced productivity, automation, and scalable solutions.

"To enable this transformation, Indian IT majors are investing heavily in proprietary AI platforms, reskilling their workforce, and forming strategic partnerships with global technology leaders.

By integrating AI into service delivery, automating routine tasks, and co-innovating with clients, these companies aim to maintain their global leadership and relevance in a rapidly changing market. The shift to AI-centric models is essential for their continued growth, competitiveness, and ability to meet the evolving demands of the digital economy," says DD Mishra, VP Analyst at Gartner.

For instance, IT services major Infosys launched Topaz, an Al-first set of services, solutions, and platforms using generative AI (GenAI) technologies.

"It helps amplify the potential of humans, enterprises and communities to tap into the next generation of opportunities to create value from unprecedented innovations, connected ecosystems and pervasive efficiencies. Infosys Topaz leverages Infosysapplied AI framework to build an AI-first core that empowers people to deliver cognitive solutions that accelerate value creation," Infosys said in a statement.