Overview
- Nasscom forecasts 6.1% growth to $315 billion in FY26 and revises FY25 revenue up to $297 billion, citing AI-led services and expanding global capability centres as key drivers.
- AI-related revenues are estimated at $10–12 billion in FY26, with more than 2 million professionals trained in AI skills, including up to 300,000 in advanced capabilities.
- The sector expects about 135,000 net new jobs in FY26, taking total headcount to roughly 5.95 million, even as campus hiring slows.
- Investor anxiety has deepened with the Nifty IT index down about 21% in February and tens of billions in market value erased, following analyst downgrades, a viral doomsday scenario and new AI tools that automate legacy software modernization.
- TCS CEO K. Krithivasan urged employees to use AI even if it cannibalises revenue, while major firms signal a potential demand improvement in FY27 on the back of strong deal bookings.