AI won’t replace India’s tech services, but will redefine and augment its role: Nasscom

/ 2 min read
Summary

The recently launched Claude Cowork tool, designed to automate tasks across legal, sales, marketing, and data analysis functions, has sparked debates about potential disruption.

Nasscom highlighted emerging opportunities in areas such as legacy system modernisation, building AI-ready data foundations, and deploying intelligent agents across enterprise functions.
Nasscom highlighted emerging opportunities in areas such as legacy system modernisation, building AI-ready data foundations, and deploying intelligent agents across enterprise functions. | Credits: Sanjay Rawat

Artificial Intelligence (AI) tools and models are driving rapid innovation and adoption across industries, but fears that they will bypass or disrupt India’s technology services sector are misplaced, Nasscom said in a statement. The industry body highlighted that AI is set to augment, rather than replace, the role of Indian IT services companies, which continue to hold a strong global presence. 

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Claude Cowork tool

The recently launched Claude Cowork tool, designed to automate tasks across legal, sales, marketing, and data analysis functions, has sparked debates about potential disruption. However, Nasscom noted that Indian technology services companies work with global enterprises that manage highly complex, interconnected technology environments with fragmented data systems. Creating meaningful business value from AI requires careful coordination and human expertise to understand industry context, enterprise workflows, and business priorities. Simple “out-of-the-box” adoption is unlikely in large-scale enterprise settings. 

Indian tech services firms have already accelerated their AI and data capabilities through investments in platforms, partnerships with AI companies and hyperscalers, talent upskilling, and strategic mergers, and acquisitions. These steps position them to support enterprises in deriving real-world value from AI technologies. 

Nasscom highlighted emerging opportunities in areas such as legacy system modernisation, building AI-ready data foundations, and deploying intelligent agents across enterprise functions. As AI adoption in enterprises shifts from experimentation to large-scale deployment, technology services companies are expected to play a pivotal role in enabling the transition. 

“With their deep understanding of enterprise systems and processes, Indian IT companies are well-positioned to orchestrate evolving technology stacks, build customised AI solutions aligned to business workflows, and drive measurable returns on AI investments,” the statement said. 

AI adoption

The industry body added that AI adoption will follow varied trajectories across enterprises, depending on scale, sector, and technology maturity. Indian technology services firms are actively reinventing themselves to stay ahead of these changes, ensuring they remain central to global enterprise AI strategies while reshaping their own service models. 

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Meanwhile, the IT industry body said the trade deal between India and the US provides much-needed macro predictability at a time when technology, talent, and trust are central to global competitiveness. It said that Nasscom-associated Indian companies contribute $103 billion to the US GDP and support over half a million jobs in that country. 

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