K Krithivasan: TCS CEO Confident in Indian IT Industry’s Future

K Krithivasan, CEO of Tata Consultancy Services (TCS), has expressed confidence that the Indian IT services industry will not face obsolescence by 2030. This assertion comes in light of TCS’s recent challenges, including its first annual revenue decline since going public in 2004, which saw a decrease of 2.4% in FY26.

Despite this decline, TCS reported its highest-ever total contract value (TCV) of $40.7 billion for the same fiscal year. Krithivasan remarked, “We have been writing its obituary every 10 years but I think Indian IT services have proven to be very resilient.” This resilience is attributed to the deep skill sets within the industry.

In FY26, TCS hired 44,000 trainees and made 25,000 offers for the next cycle, indicating a commitment to workforce development even amid revenue challenges. Furthermore, TCS completed its largest acquisition in over a decade by purchasing Coastal Cloud for $700 million, signaling a strategic move to enhance its service offerings.

As the industry evolves, TCS is shifting towards AI-led roles and services, which Krithivasan noted will require fewer traditional programmers. He stated, “We will need a lesser proportion of programmers. We require model trainers, context/prompt engineers, people who can test models and agent developers.” This shift reflects a broader trend in the IT sector towards automation and advanced technologies.

Additionally, TCS is preparing for the launch of its HyperVault data center, expected to go live in 2028, with a target capacity of 1 GW. The company has already established two memorandums of understanding (MoUs) for the data center and is in discussions for more partnerships.

Aarthi Subramanian, a key figure at TCS, highlighted the potential of generative AI in modernizing legacy systems, stating, “GenAI has unlocked a significant opportunity in legacy modernization, particularly for large, decades-old systems such as mainframes.” This perspective aligns with Krithivasan’s optimism regarding the future of the industry.

As TCS navigates these transitions, observers remain attentive to how the company will adapt to the changing landscape of technology and client demands. While TCS has faced headwinds, Krithivasan believes that “some of the headwinds are behind us. So, that’s the opportunity.” Details remain unconfirmed regarding the long-term implications of these strategic shifts.