Tata Consultancy Services (TCS) and Infosys, two of India’s top IT services providers, are falling behind global competitor Accenture in the race for AI-related project bookings. According to a report by Information Services Group (ISG), TCS had 300 AI-related projects and Infosys had 200, while Accenture had a whopping 2,250 AI projects in the 12 months leading up to June 2024. IBM followed Accenture with 1,000 AI projects, highlighting the dominance of global players in the AI space.
Experts attribute this gap to Accenture’s aggressive positioning, consulting-led strategy, and early client engagement in AI projects. Analysts suggest that the head start enjoyed by foreign tech companies has put them ahead of their Indian counterparts in the AI race. While the conversation on AI projects between clients and IT services companies remains similar, Accenture stands out for its significant investment and aggressive approach in AI.
The emergence of Generative AI (GenAI) has further highlighted the importance of AI readiness among IT services companies. Companies like Accenture have capitalized on this trend by incorporating GenAI in their deals with clients, paving the way for future growth. However, concerns remain about the impact of AI automation on traditional IT services, particularly in areas like software testing and maintenance.
Despite the growing importance of AI, TCS and Infosys have faced scrutiny from shareholders about their AI strategies and the business impact of the technology. While TCS CEO K Krithivasan reported working on 270 AI projects, Infosys CEO Salil Parekh mentioned 225 GenAI projects at the company’s annual general meeting. Accenture, on the other hand, secured GenAI orders worth $2 billion in the first nine months of the fiscal year, showcasing its dominance in the AI space.
As the debate continues about the future of AI in IT services, Indian companies are looking to strike a balance between hype and reality. While TCS warns against riding the hype cycle, Infosys remains focused on the practical applications of GenAI in the enterprise space. With the industry at a crossroads, companies like Infosys remain well-positioned to capitalize on the AI trend and drive future growth.
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