A Jefferies report warns that the IT services sector is set for a structural shift due to AI, requiring talent and operating model overhauls and increasing cyclicality.
India is a global leader in software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development, Sitharaman said noting these business segments are quite inter-connected with each other.
Jefferies has downgraded Indian information technology (IT) companies Infosys, HCLTech, and Mphasis to "hold"; LTI MindTree, Tata Consultancy Services (TCS) and Hexaware to "underperform", citing artificial intelligence (AI)-related concerns. Coforge, Sagility and IKS, however, still remain its top picks.
Business confidence in India Inc rose to a five-quarter high in December quarter of FY26, amid further reform expectations and steady domestic demand, a survey by industry body Confederation of Indian Industry (CII) showed. The CII Business Confidence Index (BCI) rose for the third consecutive quarter to 66.5 in the December quarter from 66 in the preceding September quarter.
India Inc on Sunday hailed the Union Budget 2026-27 as a 'structural shift' in the country's technology landscape, noting that the government is moving beyond fragmented pilots to build foundational layers where AI serves as a 'horizontal enabler' for the entire economy.
'When a technology is this fundamental, a country should have its own version of it, rather than relying on whether someone else chooses to build it for you.'
'Today, we are at a stage where we have launched a voice-to-voice model that supports 14 Indian languages.'
With discretionary spending still under pressure, the information technology (IT) services industry continued to face an uncertain demand environment in the third quarter of 2025-26 (Q3FY26).
This Budget positions India's taxation ideology as not merely a revenue source but as a strategic catalyst for growth, inclusion and long-term confidence.
Investors and startup executives are calling for extending the period for an entity to be recognised as a startup from 10 to 15 years for deep-tech companies.
The Mahayuti alliance has released its manifesto for the upcoming Mumbai civic elections, promising technology-led governance, concessions for women, and addressing issues like illegal immigration and infrastructure.
FDI inflows into India are expected to register robust growth in 2026, supported by strong macroeconomic fundamentals, big-ticket investment announcements, sustained efforts to improve the ease of doing business, and a new generation of investment-linked trade pacts.
'We frequently discuss AI, but we're waiting for other countries to develop solutions rather than creating intellectual property ourselves.' 'We haven't yet produced comprehensive AI solutions developed in India for global markets.'
'The bigger unknown remains global geopolitics, which is inherently unpredictable, including developments in our neighbourhood.' 'Another concern is the increasing tilt of government finances towards welfare subsidies, especially at the state level.' 'This could constrain capital expenditure, which is critical for long-term growth.'
Coforge's planned $2.35 billion all-stock acquisition of US-based Encora has divided the Street, with a few brokerages terming it a "strategically positive" but execution-heavy bet while others raising valuation concerns.
Construction major L&T is gearing up to expand its footprint in the global nuclear supply chain, a senior company official has said, while calling for amendments to key legislations on the domestic front to pave the way for the entry of private players and foreign capital necessary for capacity enhancement.
'4 lakh to 5 lakh people graduating in computer science getting jobs in software companies will not happen.'
'The Indian consumer is moving so quickly and they have so many options.'
Shift from producing graduates proficient in analysis and strategy to producing graduates capable of initiating, executing, and scaling impactful actions in real-world environments, points out Ajit Balakrishnan.
'Digital arrests are the cutting edge of the problem and the most challenging part of the ecosystem right now.'
Ola Electric has denied media reports suggesting its involvement in a leak of proprietary pouch cell technology (tech) from South Korea's LG Energy Solution, calling the allegations "baseless". The company said it has no commercial or research interest in the older pouch cell format cited in the reports, emphasising that its new 4680 Bharat Cell - based on advanced dry-electrode cylindrical tech - is already in commercial production.
Physical AI equips machines with the ability to perceive, learn, and act in the real world by integrating AI algorithms with sensors and actuators in physical systems like robots and vehicles.
Indian information technology (IT) service providers are expected to deliver low single-digit sequential growth in the first quarter (April-June) of 2025-26 (FY26), even as macroeconomic uncertainties continue to persist due to the volatile geopolitical environment.
'The heat shield technology for re-entry vehicles was first mastered in DRDO for the Agni missile.' 'This is why the Americans were so opposed to Agni in the 1980s, unlike other missiles -- it was a re-entry vehicle.'
Deep-tech now forms over half of VC portfolios in India as firms like Cornerstone, Unicorn India Ventures and All in Capital back startups combining research with scalable models
Fresher hiring grew by 8 per cent driven by non-IT services oil and gas, real estate, and education sectors.
Indian information-technology (IT) service providers are likely to report another quarter (July-September) of low, single-digit growth owing to macro uncertainties, chiefly emanating from America, with no respite in sight even in the second half of the year.
The 15-year agreement will see Infosys develop a next-generation, data-driven workforce management platform to replace the existing electronic staff record (ESR) system, which annually manages a 55 billion payroll for 1.9 million NHS employees.
...compared with 153,000 in all of 2024.
Amazon India is repositioning itself as a comprehensive business partner rather than just an e-commerce platform, slashing seller fees and introducing artificial intelligence-powered tools ahead of the country's crucial festive shopping season that could determine the year's retail performance.
French information technology (IT) and consulting services major Capgemini on Monday said it would acquire Mumbai-headquartered WNS for $3.3 billion in cash. This could be one of the largest merger & acquisition deals in the IT services and business process management sector.
Amid US-China trade tensions and economic vulnerabilities, India must seize the 'China +1' opportunity, deepen reforms, secure FTAs, and globalise its firms for long-term growth, suggests Ajay Shah.
'The way the attacks are coming has become much stronger and much wider because of AI.'
The average cost of an organisation for a data breach has risen 13 per cent to Rs 22 crore in 2025 from Rs 19.5 crore in the year-ago period, according to a report released on Thursday. However, despite the surge in costs, the security in artificial intelligence is still lacking, the report by global tech major IBM said.
rediffGURU Nayagam PP, career counsellor and the founder of EduJob360, counsels students and aspiring professionals about how they can make the right career decision.
More Indians start car shopping online, pushing automakers and dealers to respond quickly, train staff, and use AI to turn clicks into showroom visits.
'It is good to have the H1-B visa option but if tomorrow things happen to change, it is not the end of the world situation.'
India's top information- technology (IT) services companies, all cash-rich, have been tightfisted about ploughing back their earnings in new projects or acquisitions and the bulk of the profits have been distributed to shareholders through dividend and share buybacks. In the past 10 years (that is, excluding the current one), the firms have reinvested in growth and expansion only around 13.5 per cent of the cash flow generated from their operations.
'We're already seeing signs of superhuman capability.'
India's e-commerce market alone is projected to reach $200 billion by 2026, making it a prime industry for ambitious entrepreneurs, explains rediffGURU Harsh Bharwani.
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