Nasscom President Rajesh Nambiar has strongly dismissed fears that AI tools will eliminate technology services jobs, despite market concerns wiping out $50 billion from Indian IT companies' market value since 2025. He emphasizes that large enterprises' complex technology needs and regulatory requirements make IT services essential, even as AI adoption grows.
"Concerns that such tools, whether it is Claude Cowork or something else, will eliminate technology services are strongly wrong," Nambiar told ET, highlighting the vital role IT companies play in managing enterprise systems.
While analysts predict AI tools like Anthropic's Cowork plugins and Palantir's ERP software could reduce revenue growth by 2% annually over the next few years, Nambiar believes the $283 billion industry can adapt successfully.
He explains that IT service companies need to shift from being system integrators to AI orchestration partners. Their value comes from deep enterprise knowledge, which becomes more important as AI tools become common.
"Tech adoption among enterprises is moving from experimentation to large-scale deployment. When they do, service companies will play a critical role in making sure that they can help these companies make the transition," Nambiar explained.
Companies that have invested in platforms, people, and partnerships with global corporations are better positioned to succeed. India's large talent pool gives it a significant advantage in this transition.
Addressing concerns about US H-1B visa interviews, Nambiar remained optimistic. He noted that IT companies have enough local capacity in the US to handle their needs.
Nasscom is preparing to share its yearly strategic review at its upcoming Technology and Leadership Forum in February, where these industry trends will be discussed in detail.
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