TCS CEO K Krithivasan has expressed confidence that the Indian IT services industry will not become obsolete by 2030, despite facing significant challenges. This assertion comes in light of TCS reporting its first annual revenue decline since going public in 2004, with a decrease of 2.4% in FY26.
Despite the revenue dip, TCS closed FY26 with its highest-ever total contract value (TCV) of $40.7 billion, indicating a robust demand for its services. “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient,” Krithivasan stated, reflecting on the industry’s historical ability to adapt and thrive.
In a proactive move, TCS hired 44,000 trainees in FY26 and has made 25,000 offers for the upcoming cycle, showcasing its commitment to nurturing talent in a rapidly evolving sector. The company is also shifting towards AI-led roles and services, which Krithivasan noted will require a lesser proportion of traditional programmers. “We require model trainers, context/prompt engineers, people who can test models and agent developers,” he explained.
Additionally, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million, a strategic move aimed at enhancing its capabilities in the digital landscape. The company’s HyperVault data centre, expected to go live in 2028, is projected to have a target capacity of 1 GW, further solidifying TCS’s position in the market.
Aarthi Subramanian, TCS’s executive, highlighted the opportunities presented by Generative AI, particularly in modernizing legacy systems. “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes,” she noted.
While TCS navigates these changes, it remains optimistic about the future. Krithivasan remarked, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” This sentiment reflects a broader confidence in the resilience of the Indian IT sector.
Historically, TCS has faced predictions of its demise but has consistently demonstrated its ability to adapt and thrive due to its deep skill sets and strategic foresight. As the industry evolves, observers will be watching closely to see how TCS and its competitors respond to the ongoing technological shifts.
Details remain unconfirmed regarding the full impact of these changes on TCS’s long-term strategy and market position, but the company’s current trajectory suggests a focus on innovation and adaptability in the face of challenges.
