Indian IT Giants Defend Relevance Amid Agentic AI Disruption Fears

The rise of agentic AI—autonomous systems capable of executing complex workflows without human intervention—has triggered an existential debate within the $250 billion Indian IT services sector. For decades, the industry has thrived on a labor-intensive model of software development and maintenance. However, as Large Language Models (LLMs) and agentic frameworks begin to automate high-level coding tasks, the traditional 'billable hours' model is under intense scrutiny. At the recent India AI Impact Summit, the chief executives of India's largest technology firms offered a coordinated defense, framing AI not as a replacement for the industry, but as a catalyst for a fundamental shift in the nature of technical labor.

K Krithivasan, CEO of Tata Consultancy Services (TCS), dismissed fears of a 'significant shrinkage' in the workforce, pointing to the inherent complexity of global enterprise infrastructure. He argued that the role of system integrators remains a structural necessity because most global corporations operate on a dense web of legacy systems that cannot be easily deciphered or managed by an LLM in isolation. In Krithivasan's view, the industry is moving toward a model where software engineers are no longer just 'builders' of code, but 'validators' of systems. This transition necessitates a workforce skilled in testing, cybersecurity, and ethical oversight—ensuring that AI-generated outputs are not only functional but also secure and compliant with corporate governance standards.

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The rise of agentic AI—autonomous systems capable of executing complex workflows without human intervention—has triggered an existential debate within the $250 billion Indian IT services sector.

This sentiment was echoed by Arundhati Bhattacharya, CEO of Salesforce South Asia, who challenged the narrative that AI would render Software-as-a-Service (SaaS) companies redundant. Bhattacharya emphasized that software is more than just a collection of code; it is a digital manifestation of business workflows and customer pain points. While AI can 'vibe code' or generate applications rapidly, it lacks the contextual understanding of organizational observability, auditability, and adoption strategies. For SaaS providers, the value proposition is shifting from providing a tool to providing a governed environment where AI agents can operate safely and effectively. This perspective suggests that the 'agentic storm' may actually increase the demand for platforms that can orchestrate and govern autonomous AI behaviors.

Infosys CEO Salil Parekh noted that the company is already identifying specific service areas where AI can create new revenue streams, moving beyond defensive posturing toward proactive adoption. The broader industry trend suggests a pivot from 'effort-based' pricing to 'outcome-based' or 'value-based' models. As AI increases productivity, the sheer volume of code being produced will likely explode, creating a secondary market for maintenance and integration that could offset the loss of manual coding hours. However, the transition will not be without friction. The industry must navigate a massive upskilling challenge to move hundreds of thousands of employees from basic programming to high-level system architecture and AI orchestration.

Ultimately, the 'Indian IT captains' are betting on the persistence of complexity. As long as enterprise environments remain fragmented and legacy-dependent, the human-in-the-loop remains the essential bridge between raw AI capability and reliable business outcomes. The next 24 to 36 months will be critical as these firms attempt to prove to investors that they can maintain margins while their core delivery model is being automated from within. The focus is now firmly on the 'Validator-in-the-loop'—a new class of IT professional whose primary value lies in their ability to govern the machines that write the code.