New Delhi: The National Association of Software and Service Companies (Nasscom) has firmly rejected the notion that artificial intelligence (AI) will kill India’s technology services industry, saying instead that the sector will be reinvented and enhanced by AI’s adoption.
Nasscom stated that concerns about new tools like Anthropic’s Claude Cowork automating functions in areas such as legal, sales, marketing, and data analysis disrupting India’s technology services sector are “misplaced”, reported NDTV.
“Indian technology services companies work closely with global enterprises that operate complex technology environments, with interconnected systems and fragmented data. Creating real business value from AI requires careful coordination, with humans in the loop who understand business context, industry knowledge, and enterprise workflows. AI is unlikely to be adopted as a simple “out-of-the-box” solution in large enterprises,” Nasscom said.
According to Nasscom, Indian IT services firms are already reinventing themselves to stay competitive in an AI-driven world. Rather than being sidelined, technology providers are becoming key orchestrators of the transition from experimentation with AI to widespread enterprise deployment — building bespoke solutions that suit complex corporate environments.
The industry body highlighted several growth opportunities arising from AI, including:
Legacy system modernisation
Establishing AI-ready data foundations
Deploying intelligent agents across business functions
These areas, Nasscom says, will fuel the next wave of services and revenue for the sector.
Nasscom’s perspective comes amid broader market discussion about AI’s impact on Indian IT — with some analysts warning that AI tools could disrupt traditional revenue streams and pressure earnings in segments such as application services. However, the body remains confident that technology services firms will augment AI adoption rather than be displaced by it.
