TCS CEO K Krithivasan asserts that the Indian IT services industry will not face obsolescence by 2030, even as TCS reported its first annual revenue decline since going public in 2004, down 2.4% in FY26.
Despite this setback, TCS closed FY26 with a record total contract value of $40.7 billion. The company hired 44,000 trainees and made 25,000 offers for the upcoming cycle, indicating a strong commitment to workforce development.
Krithivasan noted, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This resilience is underscored by TCS’s largest acquisition in over a decade, purchasing Coastal Cloud for $700 million.
As the industry evolves, TCS is pivoting towards AI-led roles, which will require fewer traditional programmers. Krithivasan explained, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.”
Aarthi Subramanian, a key figure at TCS, highlighted 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.”
Looking ahead, TCS is preparing 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 secured two MoUs for the data centre and is in discussions for more.
Krithivasan remains optimistic about the future, saying, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” This sentiment reflects a broader belief in the enduring strength of the Indian IT sector.
While TCS navigates these changes, the industry faces ongoing challenges, and observers will be watching closely to see how these strategies unfold. Details remain unconfirmed.
