Nasscom believes AI will create new demand for Indian tech services rather than causing industry disruption. The sector is shifting toward helping global clients implement AI models, moving beyond traditional roles to drive future revenue growth.
Nasscom recently addressed industry concerns regarding the impact of artificial intelligence on the Indian technology services sector. Shivendra Singh, Vice President and Head of Global Trade Development at Nasscom, stated that the fear of AI leading to industry decline is unfounded. Instead, the organization expects AI adoption to act as a significant growth engine for Indian firms as they help global enterprises navigate the complexities of model selection and deployment.
AI Implementation as a New Revenue Driver
According to Nasscom, the role of technology services providers is evolving from basic maintenance to strategic consulting. Companies are now helping clients decide which AI models to use, how to scale them, and where to balance automated systems with human oversight. This shift suggests that while AI may change specific job roles, it creates new opportunities for firms to generate revenue by managing the complex transition to AI-native business environments. The focus is moving toward helping clients build reliable AI workflows rather than simply deploying technology.
Expanding Role of Global Capability Centers
India’s Global Capability Centers (GCCs) are also moving past their original purpose of cost reduction. These centers, which now account for approximately $100 billion in annual revenue and employ 2.3 million professionals, are increasingly becoming hubs for innovation. Investments in data centers, digital infrastructure, and AI-native startups are expected to further strengthen the contribution of GCCs to India’s tech sector. Investors often track GCC performance as a proxy for the maturity and innovation capabilities of the broader Indian IT services ecosystem.
Strengthening Global Partnerships
Beyond domestic operations, Nasscom is emphasizing international collaborations, particularly with Germany. The partnership aims to align Germany's advanced manufacturing and Industry 4.0 initiatives with India’s strengths in digital transformation. Nasscom’s involvement in the India-Germany AI Pact and the AI for Mittelstand initiative represents a strategic move to help German small and medium enterprises adopt AI, which could open new service export markets for Indian IT firms. Future engagement plans in cities like Berlin, Munich, Hamburg, and Cologne are scheduled for September, which may provide more clarity on the depth of these business opportunities. Additionally, Nasscom continues to push for greater private sector participation in satellite communications to ensure India maintains a competitive edge in emerging high-tech fields.