Indian IT companies are leveraging artificial intelligence to drive sales growth while reducing their reliance on new hires. HCL Technologies Ltd. and LTIMindtree Ltd. are among the firms utilizing AI to boost efficiency and minimize the need for additional staff.
HCL grew its service revenue by 4.8% in the fiscal year through March, despite reducing its headcount by 1.8%. CEO C Vijayakumar attributed this growth to the company's ability to build "non-linearity" into its business model. LTIMindtree also reduced its headcount by 2.9% in the first quarter of the year and expects staff growth to be non-linear with revenue growth, thanks to AI-led productivity improvements.
The Indian IT sector has boomed over the past two decades, creating millions of jobs. However, with AI integration, companies are reassessing their hiring needs and focusing on efficiency gains. AI is boosting efficiency in digital process operations by up to 50% and in software development by up to 25%, according to HCL's CEO.
As AI continues to transform the industry, Indian IT companies will likely need to balance growth with efficiency gains. While some companies still plan to hire thousands of entry-level employees, others are adopting a more cautious approach, prioritizing productivity and innovation over headcount growth.
