AI Drives Fresh Global Demand for India’s IT Services, Says Wipro CEO

Artificial intelligence is emerging as a key growth driver for India’s IT services industry, as global clients move beyond pilot projects and begin investing in large-scale AI deployments. Wipro CEO Srini Pallia said that AI is now central to many technology contracts that Indian software companies are competing for, reflecting a clear shift in client priorities.

Speaking on the sidelines of the World Economic Forum in Davos, Pallia said Wipro is actively bidding for both small AI projects and large, multi-year deals. He explained that clients across industries and geographies are at different stages of AI adoption, making it important for IT service providers to stay flexible. While pricing pressure remains high due to faster delivery timelines and smaller teams enabled by AI, Pallia expects a rise in the number of smaller AI-led deals.

India’s IT sector, which generates around $283 billion in annual revenue, faced a slowdown in recent quarters as global companies cut technology spending amid economic uncertainty. However, the focus is now shifting from AI experimentation to clear business outcomes. Boards and CEOs are increasingly asking for measurable returns on AI investments, pushing companies to demand more value-driven solutions.

Pallia said AI-assisted software development can lower costs by about 25% through higher productivity in coding and testing. This efficiency, he noted, will support more projects over time, keeping IT budgets stable in the long run. Wipro has committed $1 billion over three years to strengthen its AI capabilities.

Source: Business Standard