REBOOT MODE

AS AI UPENDS THE GLOBAL TECH ORDER, INDIAN IT GIANTS FACE A STARK CHOICE: ADAPT FAST OR FADE AWAY.

- BY KRISHNA GOPALAN

RISING UP TO THE THREAT

• In a call after the results for the first quarter of FY26, Wipro's Srini Pallia said returning to profitable growth was a top priority and guided for a sequential growth rate of -1% to 1%

• The combined revenue of the big four IT firms grew at an annual rate of 10% over the last decade, from ₹2.32 lakh crore in FY15 to ₹6.24 lakh crore in FY25

• Revenue growth has slowed to 5% and profit growth to 7% since FY23

• The IT industrywhich led India's boom post the 1991 reforms-is grappling with issues ranging from dependence on a legacy business model to widespread adoption of artificial intelligence

• Both Gen AI and Agentic AI (the latter having the ability to solve complex problems) are new and rapidly evolving. Even customers need help to understand the technology, identify use cases, and prepare themselves

• Indian IT companies will have to decide if they want to make large investments in artificial intelligence

INDIA'S IT SECTOR is facing a defining moment. The sentiment was echoed by Wipro's CEO & MD Srini Pallia in an analyst call on April 16 after FY25 results. He had been in the top job for a little over a year. There was understandably a lot of attention.

The tone was measured, but his words did not hide worries over tepid growth and margin pressures. His guidance—tracked most closely—talked about the uncertainty and how clients could take a measured approach, especially on transformational projects and discretionary spending. “With this in mind, and based on our current visibility, we are guiding for a sequential growth rate of -3.5% to -1.5% in constant currency terms,” he said.