Generative AI boosts productivity in Indian IT sector: TCS exec
BENGALURU, INDIA — Tata Consultancy Services (TCS), a leading IT firm in India, is leveraging generative artificial intelligence (AI) to boost productivity in the rapidly expanding field of engineering research and design.
According to Sreenivasa Chakravarti, vice president of Internet of Things and digital engineering at TCS, this technological advancement signifies a major shift in the industry.
AI-driven product development
In an interview with Reuters, Chakravarti highlighted that generative AI has enabled TCS to cut product development cycles for its engineering clients by up to 20%.
This acceleration is particularly advantageous for high-tech clients such as Rolls Royce, Jaguar Land Rover, and Siemens, though specific client names were not disclosed in relation to these productivity gains.
“It (generative AI) is used for code generation, testing, and quality (assurance), which are low-hanging fruits right now,” Chakravarti explained.
Rapid growth in engineering services sector
The engineering, research, and design services sector is a crucial part of India’s $254 billion tech industry, contributing approximately one-sixth of its revenue.
This sector, which includes support for industries like self-driving technology and sustainability solutions for oil and gas, is projected to grow by 7.5% in the fiscal year 2024, making it the fastest-growing segment within the industry.
The National Association of Software and Service Companies (NASSCOM) anticipates that this space will nearly quadruple to $170 billion by 2030.
Industry-wide adoption and acquisitions
The adoption of generative AI in engineering services is not confined to TCS. Other major players, such as Infosys and Wipro, along with specialized firms like Tata Elxsi, Cyient, and L&T Technology Services, are also expanding their focus in this area.
This growth occurs amidst economic challenges in India’s core software services, with clients reducing spending.
The engineering, research, and design niche is becoming increasingly competitive, with large IT firms acquiring smaller peers to enhance their capabilities.
For instance, Cognizant acquired digital engineering firm Belcan for $1.3 billion in June, and Infosys purchased German company in-tech for $480 million earlier this year.
Generative AI’s transformative impact
Generative AI’s role in transforming the engineering sector highlights its potential to drive innovation and efficiency, positioning Indian IT firms at the forefront of global technological advancements.
This technology not only accelerates development but also enables companies to explore new business models and revenue streams, making it a pivotal tool for future growth.
