Indian IT firms use AI to drive sales growth with fewer new hires

Indian IT outsourcing firms, employing millions, are leveraging artificial intelligence to enhance efficiency and minimize the necessity for additional employees to expand their operations.

HCL Technologies Ltd. and LTIMindtree Ltd. are some of the firms stating they require fewer new employees to maintain revenue growth. The companies, earning their profits through non-core business activities and IT outsourcing projects from firms in the US and Europe, have adopted AI tools and are currently enjoying the advantages of improved efficiency.

HCL increased its service revenue by 4.8 percent in the fiscal year ending in March, despite a 1.8 percent reduction in headcount. The smaller peer LTIMindtree decreased its workforce by 2.9 percent in the initial three months of this year compared to the prior quarter. Chief Operating Officer Nachiket Deshpande informed analysts that staff expansion might not align steadily with revenue increases, referencing productivity enhancements driven by AI.

For India’s IT leaders, personnel salaries are their largest cost, and recruitment strategies have historically been viewed as a sign of positive prospects for the companies. India’s IT industry has surged in the last twenty years, establishing itself as one of the largest job generators in the most populated country globally.

Certainly, numerous companies continue to claim they will enhance their hiring efforts. Infosys Ltd. anticipates hiring 20,000 entry-level staff in this financial year, surpassing the 15,000 it employed last year. Tata Consultancy Services Ltd. did not specify a figure but indicated its intention to recruit more graduates from college campuses this year, even in a tough economic climate.

HCL could achieve greater efficiencies through AI compared to its larger software-oriented competitors, as it derives a higher portion of its revenue from product engineering and IT infrastructure management. Vijayakumar stated that AI is enhancing efficiency in digital process operations by nearly 50 percent.