TCS CEO K Krithivasan has expressed unwavering confidence in the Indian IT services industry, asserting it will not face obsolescence by 2030. This statement comes on the heels of TCS reporting its first annual revenue decline since going public in 2004, with a decrease of 2.4% in FY26.
Despite this setback, TCS closed FY26 with a remarkable total contract value (TCV) of $40.7 billion, highlighting the company’s continued strength in securing significant deals. Krithivasan remarked, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This sentiment reflects a long-standing belief in the sector’s adaptability and innovation.
In a strategic move, TCS hired 44,000 trainees in FY26 and has made 25,000 offers for the upcoming cycle, showcasing its commitment to nurturing new talent. Furthermore, TCS completed its largest acquisition in over a decade, purchasing Coastal Cloud for $700 million, a significant step in expanding its capabilities.
As the industry evolves, TCS is shifting towards AI-led roles and services, which Krithivasan notes will require fewer traditional programmers. He stated, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.” This pivot indicates a broader trend within the tech sector, where generative AI is unlocking new opportunities, particularly in modernizing legacy systems.
Aarthi Subramanian, TCS’s Chief Technology Officer, echoed this optimism, stating, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.” This shift not only reflects the changing landscape of technology but also positions TCS as a leader in embracing these advancements.
Looking ahead, TCS is set to launch its HyperVault data center, expected to go live in 2028, with a target capacity of 1 GW. The company has already established two memorandums of understanding (MoUs) for the data center, with ongoing discussions for additional partnerships. Krithivasan’s outlook remains bright, as he believes, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.”
As the Indian IT industry navigates these changes, observers will be keen to see how TCS adapts and thrives in this new environment. The resilience of the sector, coupled with TCS’s strategic initiatives, suggests a promising future, although details remain unconfirmed regarding the full impact of these transitions.
