From disruption fears to deal-making: IT firms embrace AI platforms

Bengaluru: Indian IT services companies have begun partnering with global artificial intelligence (AI) platform providers to tap into the fast-growing demand for AI services, while also seeking to mitigate the threat of disruption posed by these platforms.

Analysts view these collaborations as a signal that system integrators such as Indian IT firms are positioning themselves as enablers and sellers of advanced AI solutions from global technology leaders like OpenAI, Anthropic and Google, rather than competing directly with them.

These partnerships also aim to reassure investors who increasingly view AI platforms as potential competitors to traditional IT services companies.

“Such collaborations send a message that Indian IT companies are not directly competing with platforms like OpenAI or Anthropic. Instead, they are enabling the integration of these AI solutions for clients’ digital transformation journeys,” said a Mumbai-based market analyst. However, the analyst added that investor concerns over AI-led disruption are unlikely to subside until tangible revenue benefits begin to emerge.

Recently, Infosys announced a partnership with Anthropic to build customised AI agents for enterprise customers.

According to a note by brokerage firm Jefferies, enterprises are expected to develop smaller, domain-specific language models using proprietary data, with Indian IT services companies playing a key role in migrating corporates to this approach.

“The above (Infosys-Anthropic) partnership is clearly a positive from an Indian market standpoint, as it indicates there may be a future for the Indian IT services sector,” the note said.

Similarly, TCS has tied up with OpenAI in the AI infrastructure space. Under the collaboration, TCS will build AI infrastructure with an initial capacity of 100 MW, scalable up to 1 GW. OpenAI will be the first customer of TCS’ HyperVault data centre business.

Mid-tier IT firms such as Persistent Systems are also leveraging AI platforms to deliver agentic AI-based solutions to enterprise clients.

Globally, several SaaS companies are integrating AI platforms from OpenAI, Anthropic and others to deploy agentic AI tools for their customers. “AI provides a transformation opportunity for enterprises, and IT services providers that can restructure themselves to leverage this will thrive,” said Pareekh Jain, IT outsourcing advisor and founder of Pareekh Consulting, in a social media post.

The Nifty IT Index has witnessed heavy selling over the past month amid fears that agentic AI tools could displace Indian IT firms. Large and mid-tier IT companies have lost up to 20 per cent of their market capitalisation since the beginning of the year, weighing on broader benchmark indices.