As artificial intelligence reshapes delivery models across the technology sector, fears of workforce cuts have grown louder. But Joseph Anantharaju, Co-Chairman and CEO of Happiest Minds Technologies, says that is not the direction his company is heading.
"Don't see any headcount reduction due to AI," he said in an interview with NDTV Profit, adding that he expects a net increase in the company's workforce.
This comes amid a broad IT sell-off in the market as AI fears cloud sentiment. Software stocks have been under pressure for months as investors weigh the impact of artificial intelligence on traditional tech businesses. On Tuesday, sentiment improved slightly, with IBM shares regaining part of Monday's sharp drop.
The company had fallen about 13% after Anthropic revealed that its Claude Code product can update and adapt an older programming language still widely used on IBM mainframes—raising concerns about competitive pressures from AI‑driven tools.
ALSO READ: IBM Business Model At Risk? Anthropic's Claude Can Modernise COBOL Code; Stocks Fall 13%
AI to Drive Productivity, Support Margins
According to Anantharaju, the adoption of new AI tools is translating into productivity gains that will help expand margins. He said the efficiencies delivered by AI are enabling the company to manage higher volumes of work and strengthen execution.
"We are able to get enough business," he said, signalling steady demand.
He also noted that Happiest Minds is exploring opportunities with new-age firms building agentic AI systems, which are designed to operate with greater autonomy and decision-making capability.
Indian IT's Next Growth Phase
Anantharaju expressed confidence in the broader Indian IT industry's outlook, saying the sector has adequate demand drivers for its next growth phase. He described the current moment as the early stages of a much larger AI cycle.
"Whole potential of AI is just getting unlocked," he said, pointing to significant opportunity across industries as enterprises integrate AI more deeply into operations.
Even as automation continues to evolve, the company's stance signals that, for now, AI-led efficiency gains are being viewed as a lever for expansion rather than downsizing.
ALSO READ: Anthropic Launches Claude Plugins For HR, Finance Tasks: Check Key Updates
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