The Indian IT industry continues to demonstrate remarkable resilience and innovation, with AI-led services driving a powerful surge in deal momentum during the second quarter (Q2) of FY2025–26. As global enterprises embrace artificial intelligence, automation, and data-driven transformation, Indian IT majors like TCS, Infosys, Wipro, HCLTech, and Tech Mahindra are witnessing a strong rebound in demand across sectors.
With rising client interest in AI-led services, digital transformation, and automation-first solutions, India’s IT giants are successfully securing multi-million-dollar deals, setting the stage for sustained growth amid global economic uncertainty.
The Growth of AI-Led Services in the Indian IT Landscape
Artificial intelligence has evolved from being an emerging technology to a core business enabler. Today, it is at the heart of every digital transformation strategy across industries such as finance, healthcare, retail, logistics, and manufacturing.
Leading Indian IT firms have strategically positioned themselves as global AI service providers, combining machine learning, automation, and cloud computing to deliver next-generation solutions.
The adoption of AI-led services allows companies to:
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Streamline operations
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Enhance customer experience
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Predict business trends using data analytics
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Reduce costs and improve decision-making speed
As a result, AI-led deal momentum has significantly accelerated during Q2, contributing to record-breaking deal pipelines for India’s top IT players.
Q2 Highlights: AI-Led Deal Wins and Revenue Growth
The second quarter brought strong results for Indian IT companies, largely powered by their ability to blend AI innovation with scalable digital delivery models.
Below is a summary of key performance highlights:
| Company | Revenue Growth (Q2 FY26) | Major AI-Led Deals | Focus Areas |
|---|---|---|---|
| TCS | 7.2% YoY | Global banking & manufacturing clients | Generative AI, cloud automation |
| Infosys | 6.5% YoY | North American financial services firm | Predictive analytics, AI consulting |
| Wipro | 5.9% YoY | Retail & e-commerce clients | Intelligent automation, cloud-native apps |
| HCLTech | 8.3% YoY | European telecom & healthcare companies | Edge AI, hybrid cloud |
| Tech Mahindra | 4.8% YoY | Automotive and logistics sectors | AI-powered digital twins, IoT analytics |
These results reflect the shift toward AI-led services as a key growth driver across the IT sector.
How AI-Led Services are Reshaping the IT Industry
1. Driving Digital Transformation at Scale
The integration of AI technologies is enabling Indian IT firms to accelerate digital transformation journeys for global clients. AI tools are being used for automation, cybersecurity, and decision-making — helping companies improve productivity and efficiency.
2. New Business Models and AI Platforms
Leading IT firms are launching proprietary AI platforms and frameworks that allow enterprises to adopt AI solutions faster. For instance, Infosys Topaz, TCS Neural Manufacturing, and Wipro Holmes are examples of platforms driving innovation through AI-led services.
3. Enhancing Customer Experience
Through AI-driven analytics and automation, IT majors are helping clients personalize experiences and anticipate customer needs. Chatbots, recommendation engines, and intelligent CRM tools are now standard offerings in AI-led service portfolios.
4. Creating New Revenue Streams
The growing adoption of AI-led services is generating entirely new business opportunities. Subscription-based models, managed AI operations, and cloud-based analytics services are contributing to recurring revenue streams for IT firms.
Q2 Deal Momentum: What’s Fueling the Growth
The second quarter of FY26 saw major AI-led deal signings across BFSI, healthcare, manufacturing, and retail sectors. Analysts observed a consistent uptick in large transformation deals—valued between $100 million and $500 million.
Factors driving this momentum include:
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Increased Global Demand for Automation: Companies worldwide are looking to automate manual processes through AI-led services.
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Generative AI Revolution: Adoption of generative AI tools like chatbots, code assistants, and image generators has opened new service lines for IT firms.
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Sustainable Technology Initiatives: Enterprises are leveraging AI for optimizing energy use, supply chains, and emissions management.
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Hybrid Cloud and Data Platforms: AI-led modernization is helping organizations unify their IT infrastructure for agility and resilience.
Investor and Analyst Sentiment Remains Strong
Just as brokerage analysts were bullish on Reliance Industries’ Q2 performance due to diversified growth, they also express confidence in the Indian IT sector’s AI-led transformation.
Leading global brokerage houses such as Goldman Sachs, Nomura, and Morgan Stanley have maintained a positive outlook on top IT players, expecting AI-led services to contribute significantly to FY26–FY27 revenue.
Analysts predict that AI-related revenues could account for up to 25% of total IT service income within the next two years, signaling a major structural shift in the sector.
Challenges and Opportunities in AI-Led Services
While AI presents enormous opportunities, Indian IT majors must navigate challenges such as:
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Talent Gap: Shortage of skilled AI engineers and data scientists.
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Data Privacy Concerns: Compliance with global data protection laws like GDPR.
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Cost of Implementation: Developing AI infrastructure requires significant investment.
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Ethical AI Practices: Ensuring fairness, transparency, and accountability in algorithms.
Despite these challenges, the opportunities are immense. With a strong global delivery network, Indian IT firms are uniquely positioned to lead in the era of AI-led services.
Future Outlook: AI-Led Services to Define the Next Decade
The momentum seen in Q2 is not a temporary spike—it marks the beginning of a long-term AI transformation journey. Over the next decade, AI will redefine how IT companies design, deliver, and support digital ecosystems.
According to industry estimates:
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Global spending on AI-led services will surpass $900 billion by 2030.
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India will contribute more than 15% of global AI talent.
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AI will drive up to 30% of total IT services exports from India.
Indian IT majors are thus gearing up for a future where AI is not just an enabler but the foundation of enterprise transformation.
FAQs: Indian IT Majors and AI-Led Services
Q1. What are AI-led services in the IT sector?
AI-led services involve integrating artificial intelligence and automation technologies into IT processes to enhance decision-making, efficiency, and customer experience.
Q2. Which Indian IT companies are leading in AI-led services?
Top players include TCS, Infosys, Wipro, HCLTech, and Tech Mahindra, each offering specialized AI platforms and solutions.
Q3. How did AI-led services impact Q2 deal momentum?
AI-led projects helped IT majors secure large contracts across BFSI, manufacturing, and healthcare, boosting revenue and profitability.
Q4. What are the main challenges for AI adoption in IT?
Key challenges include data privacy, talent shortages, and high infrastructure costs for AI deployment.
Q5. What is the growth outlook for AI-led services?
The demand for AI-led services is expected to grow rapidly, with Indian IT firms emerging as global leaders in enterprise AI transformation.
Q6. How can clients benefit from AI-led IT services?
Clients can achieve operational efficiency, data-driven insights, reduced costs, and enhanced customer engagement through AI-led IT solutions.
Conclusion
The second quarter of FY26 marks a turning point for Indian IT majors. With the rapid expansion of AI-led services, these companies are redefining their business models, strengthening client relationships, and capturing global opportunities.
As enterprises increasingly turn to artificial intelligence for competitive advantage, AI-led services will remain the key growth engine driving India’s IT success story in the years to come.
