Global AI and cloud investments speed development, pressure Indian IT
Business
Indian IT companies are feeling the heat as global businesses invest big in AI and cloud tech, making software development much faster and more efficient.
HSBC, for example, saw unit testing get 60% quicker with AI tools, while NatWest reported a massive 10-fold jump in productivity from its AI pilot projects.
Clients insource tech, cutting vendor demand
With these AI gains, many firms are cutting costs by handling more tech work themselves and relying less on outside vendors.
Big names like Charles Schwab and Citizens Financial are building up their own teams instead of outsourcing.
As budgets shift toward internal projects, growth is getting tougher for Indian IT giants, though Kotak still sees hope for TCS and Infosys but warns Wipro could have a rougher ride ahead.