Generative artificial intelligence (GenAI) is poised to significantly boost the productivity of India’s $254 billion IT industry, with a projected increase of 43% to 45% over the next five years, according to a survey conducted by consulting firm EY India. This surge in productivity will stem from the dual impact of GenAI’s internal integration within IT companies and the growing shift of client projects from proof of concept (POC) to full-scale production.
Leading Indian IT firms, such as Tata Consultancy Services (TCS) and Infosys, have noted that their clients are increasingly using AI for new projects. EY India’s survey found that 89% of these companies have already begun experimenting with GenAI, with 33% of these projects already in production. Abhinav Johri, a technology consulting partner at EY India, emphasized that businesses are transitioning from experimenting with AI to adopting it at an enterprise-wide scale, showcasing the industry’s confidence in the technology’s potential.
The survey also highlighted specific roles within the IT industry that stand to benefit the most. Software development is expected to experience the largest productivity boost of approximately 60%, followed by BPO services with a 52% increase, and IT consulting at 47%. Together, these three sectors—software development, BPO services, and IT consulting—are expected to contribute to 50%-60% of the total productivity improvement across India’s tech services industry.
The integration of AI is not only helping IT firms enhance their customer service but is also contributing to cost reduction and improved revenue growth, as reported by the survey’s respondents.
