Nasscom, the Apex body for the technology industry in India has downplayed concerns that advanced artificial intelligence (AI) will disrupt India's technology services sector. Instead, it believes AI will redefine and enhance the industry's role. According to Nasscom, new tools like Anthropic's Claude Cowork, which automate tasks across various functions, won't bypass Indian IT services but rather augment their capabilities.
Nasscom stated that concerns about new tools like Anthropic's Claude Cowork automating functions in areas such as legal, sales, marketing, and data analysis disrupting India's technology services sector are "misplaced".
"Indian technology services companies work closely with global enterprises that operate complex technology environments, with interconnected systems and fragmented data. Creating real business value from AI requires careful coordination, with humans in the loop who understand business context, industry knowledge, and enterprise workflows. AI is unlikely to be adopted as a simple "out-of-the-box" solution in large enterprises," Nasscom said, adding that creating real business value from AI requires careful coordination with humans-in-the-loop, who possess deep industry knowledge and understand specific business contexts.
Instead, the sector is seeing a shift where technology service providers act as essential orchestrators for the transition from AI experimentation to large-scale deployment.
According to Nasscom, Indian tech firms have already begun "reinventing" themselves to stay ahead of the curve.
The industry body identified several emerging growth areas for the sector, fuelled by AI, including legacy system modernisation, AI-ready data foundations, and the deployment of intelligent agents across enterprise functions.
"As enterprise AI adoption moves from experimentation to large-scale deployment, technology services companies will play a critical role in enabling this transition," Nasscom said, adding that these firms are well-positioned to build customised solutions that drive measurable returns on AI investments.
