TCS CEO K Krithivasan believes that the Indian IT services industry will not be obsolete by 2030, despite facing challenges. This confidence comes as TCS reported its first annual revenue decline since going public in 2004, with a decrease of 2.4% in FY26.
In FY26, TCS achieved its highest-ever total contract value (TCV) of $40.7 billion, showcasing the company’s resilience in securing substantial deals even amid a downturn. Krithivasan remarked, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This statement underscores the industry’s ability to adapt and thrive despite ongoing predictions of decline.
During FY26, TCS also hired 44,000 trainees and made 25,000 offers for the next hiring cycle, indicating a commitment to workforce development. Additionally, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million, further solidifying its market position.
As the industry shifts towards AI-led roles and services, Krithivasan noted a changing landscape: “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.” This transition reflects the growing importance of artificial intelligence in IT services.
TCS is also making strides with its HyperVault data center, which is 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 and is in discussions for additional agreements.
Aarthi Subramanian, another key figure at TCS, emphasized the opportunities presented by generative AI, stating, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.” This highlights the potential for innovation within the sector.
Despite the challenges faced, Krithivasan expressed optimism about the future, stating, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” This perspective suggests a belief in a recovery and growth phase for TCS and the broader Indian IT industry.
As the industry evolves, observers will be watching closely to see how TCS adapts to these changes and whether it can maintain its competitive edge in a rapidly transforming landscape. Details remain unconfirmed regarding the full impact of these strategic shifts.
