K Krithivasan: Resilience of Indian IT Services Amid Revenue Decline
K Krithivasan, CEO of Tata Consultancy Services (TCS), has expressed confidence that the Indian IT services industry will not face obsolescence by 2030, despite recent challenges. TCS reported its first annual revenue decline since going public in 2004, with a decrease of 2.4% in FY26, yet closed the year with a record total contract value (TCV) of $40.7 billion.
In FY26, TCS hired 44,000 trainees and made 25,000 offers for the next hiring cycle, indicating a commitment to nurturing talent in a shifting landscape. Krithivasan remarked, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This statement underscores a historical trend where TCS has often faced predictions of decline but has consistently adapted and thrived.
One of the significant shifts within TCS is its move towards AI-led roles and services, which will require fewer traditional programmers. Krithivasan noted, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.” This pivot reflects a broader industry trend towards automation and artificial intelligence, which is reshaping job requirements.
Additionally, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million, a strategic move aimed at enhancing its service offerings. The company is also gearing up for the launch of its HyperVault data center, expected to go live in 2028, with a target capacity of 1 GW. TCS currently has two Memorandums of Understanding (MoUs) for the data center and is in discussions for more.
Aarthi Subramanian, a key figure at TCS, highlighted the potential of generative AI in modernizing legacy systems, stating, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.” This perspective aligns with the industry’s ongoing transformation, where technology is continuously evolving.
Despite the recent revenue decline, Krithivasan remains optimistic about the future, asserting, “Definitely, we are more optimistic. I think some of the headwinds are behind us. So, that’s the opportunity.” This optimism is crucial as TCS navigates a competitive landscape marked by rapid technological advancements.
As the Indian IT industry adapts to these changes, observers will be watching closely to see how TCS leverages its strengths and addresses the challenges ahead. Details remain unconfirmed regarding the long-term impacts of these strategic shifts, but the resilience demonstrated by TCS thus far suggests a robust capacity for adaptation.
