From Coders to Creators: Why Indian IT Must Become Indian AI

For three decades, India’s IT industry rode the globalisation wave — managing code, processes, and systems for the world’s biggest corporations. That era is ending. Weak Western economies are squeezing budgets. AI is automating coding work at lightning speed. Global Capability Centres (GCCs) in India are taking over niche industry-specific IT roles once dominated by India's IT majors.

The storm is here. The question is: will Indian IT companies simply survive — or will they seize the AI future?


The Cracks in the Old Model

Client geographies are under strain – US and EU markets face slower growth, triggering cost-cutting cycles.

AI is 'cannibalising' bread-and-butter work – Generative AI writes, tests, and refactors code far faster than human teams.

The rise of GCCs – Big MNCs are bypassing Indian IT majors by setting up their own in-house Indian teams and centres to manage niche processes directly.

In other words, the outsource-contracting model that made Indian IT global giants is becoming a relic. One can’t bill hours when an AI does the job in seconds.


The Opportunity in Industry-Specific AI

Generic “know-everything” AI models will be dominated by US–China tech giants. The real value lies in industry-tailored AI. For example:-

Banking, Finance & Insurance – compliance-aware AI advisors

Aerospace – predictive maintenance AI for aircraft fleets

Energy – AI for grid load balancing and fault prediction

Mining – geological AI for yield optimisation and safety monitoring

Automotive – AI for manufacturing line automation and design simulation


Indian IT companies already manage the data, workflows, and tech backbones of these industries. They just don’t own the AI products.

In other words, Indian IT companies right now are like highly skilled tailors. They take a piece of cloth — in this case, a ready-made AI model — and expertly cut, stitch, and shape it into a garment that fits the client’s needs. This has value, but it’s still working with someone else’s fabric.


The Transition We Must Make

The next leap is to become co-creators of the cloth itself — to be involved in making the very AI model that others will later shape. By helping weave the fabric of industry-specific AI, Indian companies can move from service providers to product leaders, from stitching garments to designing the textiles the world wears. To put it concretely:-

1. From service mindset to product mindset – Stop just integrating someone else’s AI; start co-owning the models and platforms.

2. Partner with mega AI companies – OpenAI, xAI, Microsoft, Google, Apple — co-develop industry-specific AI models using India’s domain expertise.

3. Leverage proprietary datasets – Use decades of client trust to gain anonymised, compliance-ready datasets for fine-tuning models.

4. Invest in vertical AI R&D labs – BFSI AI Lab, Energy AI Lab, Aerospace AI Lab — each tied to revenue goals.


Why the World Needs Indian AI

Western economies can’t build all industry-specific AI solutions fast enough.

China will focus on its domestic market and friendly blocs.

India has the cross-industry process knowledge, English-language advantage, and low-cost high-skill AI talent to be the neutral, global supplier of industry AI solutions.


The Rallying Cry

The IT revolution made India the world’s back office.

The AI revolution can make India the world’s AI brain.

But this won’t happen if our IT giants play it safe. The clock is ticking — every month of inaction lets others claim markets we should own.

It’s time for TCS, Infosys, Wipro, HCL, Tech Mahindra — and every ambitious mid-tier player — to step forward, partner up, and co-create.

The choice is clear: adapt and innovate, or become irrelevant in the very future you helped build.

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