- Nasscom states AI tools will redefine, not replace, Indian IT services sector roles
- Indian IT firms collaborate closely with global enterprises managing complex systems
- IT firms have boosted AI capabilities via platforms, partnerships, talent, and acquisitions
Artificial intelligence tools won't bypass the tech services provided by Indian information technology majors, according to the National Association of Software and Service Companies. Instead, the role of IT firms will be redefined and augmented, it added.
The recently released Claude Cowork tool of Anthriopic aims to automate work across functions such as legal, sales, marketing, and data analysis. However, concerns that such tools will significantly disrupt or eliminate the technology services sector where India has a strong global presence are "misplaced", according to Nasscom.
"Indian technology services companies work closely with global enterprises that operate complex technology environments, with interconnected systems and fragmented data. Creating real business value from AI requires careful coordination, with humans in the loop who understand business context, industry knowledge, and enterprise workflows. AI is unlikely to be adopted as a simple “out-of-the-box” solution in large enterprises," it said.
Technology services companies have already accelerated their data and AI capabilities by investing in platforms, building partnerships with AI companies and hyperscalers, upskilling talent, and leveraging mergers and acquisitions.
With AI, new opportunities are emerging in areas such as legacy modernisation, AI-ready data foundations, and the use of intelligent agents across business and enterprise functions. As enterprise AI adoption moves from experimentation to large-scale deployment, technology services companies will play a critical role in enabling this transition, Nasscom added.
"Their deep understanding of enterprise systems and processes positions them well to orchestrate evolving technology stacks, build customized solutions aligned to business workflows, and drive measurable returns on AI investments. AI adoption will follow different paths across different types of enterprises, and the technology services sector is actively reinventing itself to stay ahead of these changes," it said.
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Trade Deal Impact
The trade deal between India and the US provides much-needed macro predictability at a time when technology, talent, and trust are central to global competitiveness, IT industry body Nasscom has said.
It said that Nasscom-associated Indian companies contribute USD 103 billion to the US GDP and support over half a million jobs in that country.
"The India-US trade deal provides much-needed macro predictability at a time when technology, talent, and trust are central to global competitiveness," Rajesh Nambiar, President of Nasscom, said at the Nasscom US CEO Forum which was held in Washington on February 4-5.
During the event, the Nasscom delegation held extensive talks with senior US administration officials as well as lawmakers.
The third meeting of the forum marked the first major industry engagement following the announcement of the India-US trade deal earlier this week.
Nambiar emphasised that the forum is now focused on a partnership "anchored in data, accountability, and long-term value creation".
Discussions at the forum highlighted opportunities for enhanced India-US collaboration across the AI value chain, in line with the US-led Pax Silica coalition.
As global AI adoption speeds up, Indian technology companies are poised to increase their involvement in critical areas, including enterprise and custom applications, consulting and engineering services, and new prospects in silicon design and advanced platforms, Nasscom said.
Amit Chadha, Vice Chair of the Nasscom US CEO Forum, and CEO & MD of L&T Technology Services, noted that the two nations are uniquely positioned to build a resilient, innovation-led future for both economies.
"India and the United States have a generational opportunity to build a trusted technology alliance across AI, semiconductors and digital infrastructure. Indian tech companies are deeply embedded in the success of US enterprises, supporting the majority of Fortune 500 firms while creating local jobs across US states," he said.
Nasscom, which represents India's USD 284 billion technology industry, inaugurated the US CEO Forum in July 2025 with an aim to drive strategic dialogue between industry leaders and the governments of both nations.
With PTI inputs
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