IT Pivots From Services To Scalable AI Platforms: Will Deal Flows Continue In 2026?

Artificial intelligence (AI) will surely change the way we live. However, it has already changed the way companies run their businesses. According to tech experts, the new deals signed by India's information technology (IT) companies have deepened client relevance for AI beyond cost efficiencies.

According to Prashanth Kaddi, Partner, Deloitte India, despite the pivot by IT firms, there's still a gap between the promise of AI and what companies are able to realise. In an exclusive interaction with NDTV Profit, Kaddi said that the gap is a journey that every firm is trying to ^help its clients navigate.

According to Kaddi, there are multiple pivots that Indian IT companies are working with, apart from buying out AI companies. For instance, looking at complementary acquisitions, particularly in services around ARP, CRP etc.

''This is apart from what they are trying to grow organically. Each of these strategies has to be a coherent set to make sense of that particular client or set of offerings. One of the natural hedges is also that many of these acquisitions have been of AI services firms globally which means they acquire the client set and the potential solutions to have AI conversations with their existing client base," Kaddi told NDTV Profit on Dec. 30.

According to him, the pivot is a valid way to try and accelerate the journey. However, he also added that the way these processes will be embedded, both in terms of offerings and what the clients can digest, is yet to be seen in the next few quarters. Kaddi remains optimistic of Indian IT companies signing more AI deals in 2026. The acquisitions will give rise to AI talent.

This comes after software majors such as HCL Technologies, Tata Consultancy Services and IT services companies such as Coforge, have inked some major AI deals in 2025. Recently, Coforge announced its acquisition of US-based artificial intelligence company Encora for an enterprise value of $2.35 billion or around Rs 21,138 crore. The purchase will be financed by share swap and an equity sale to institutional investors.