TCS CEO K Krithivasan believes the Indian IT services industry will not become obsolete by 2030, citing resilience amid challenges.
TCS CEO K Krithivasan has expressed confidence that the Indian IT services industry will not face obsolescence by 2030, despite recent challenges. This assertion comes in the wake of TCS reporting its first annual revenue decline since going public in 2004, with a decrease of 2.4% in FY26.
Despite the decline, TCS achieved a record total contract value (TCV) of $40.7 billion in FY26, showcasing the company’s ongoing strength in securing major projects. Krithivasan remarked, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This resilience is attributed to the industry’s deep skill sets and adaptability.
In FY26, TCS hired 44,000 trainees and made 25,000 offers for the upcoming cycle, indicating a commitment to nurturing new talent in the face of evolving industry demands. The company is also pivoting towards AI-led roles, which Krithivasan noted will require a shift in workforce composition. He stated, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.”
In a significant strategic move, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million. This acquisition is part of TCS’s broader strategy to enhance its capabilities in the rapidly changing tech landscape.
Moreover, TCS is preparing to launch its HyperVault data center, expected to go live in 2028, with a target capacity of 1 GW. The company has already signed two memorandums of understanding (MoUs) for the data center and is in discussions for additional partnerships.
Aarthi Subramanian, a key figure at TCS, highlighted the potential of Generative AI in modernizing legacy systems, particularly those that have been in place for decades. She noted, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.”
As TCS navigates these changes, Krithivasan remains optimistic about the future, stating, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” This optimism is crucial as the company adapts to the evolving landscape of the IT industry.
While TCS continues to innovate and expand, observers will be watching closely to see how these strategies play out in the coming years. Details remain unconfirmed regarding the long-term impact of these changes on the broader Indian IT sector.
