TCS CEO K Krithivasan has expressed confidence that the Indian IT services industry will not face obsolescence by 2030, despite challenges reflected in the company’s recent financial performance. TCS reported its first annual revenue decline since going public in 2004, with a drop of 2.4% in FY26.
Despite this setback, TCS closed FY26 with its highest-ever total contract value (TCV) of $40.7 billion. The company also hired 44,000 trainees in FY26 and made 25,000 offers for the next hiring cycle, indicating a commitment to workforce development.
K Krithivasan stated, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This resilience is crucial as the industry adapts to changing demands, particularly with the rise of artificial intelligence.
TCS is shifting towards AI-led roles and services, which may require fewer traditional programmers. K Krithivasan noted, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.”
In a significant move, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million. This acquisition is part of TCS’s strategy to enhance its capabilities in the evolving tech landscape.
Additionally, TCS is gearing up for the launch of its HyperVault data centre, expected to go live in 2028, with a target capacity of 1 GW. The company has already signed two memorandums of understanding (MoUs) for the data centre and is in talks for more.
Aarthi Subramanian, a key figure at TCS, remarked, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.” This reflects the broader industry trend towards modernization and efficiency.
Despite the current challenges, K Krithivasan remains optimistic about the future, stating, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” Observers will be watching closely to see how TCS navigates these changes and what further developments unfold in the Indian IT sector.
