The Indian IT services sector is likely to emerge stronger from the ongoing generative artificial intelligence (Gen AI) disruption. According to a report by Nuvama, enterprise adoption of Gen AI is still evolving, but the long-term outlook for Indian IT companies remains positive. The report said, "It maintains that the Indian IT Services industry will come out stronger from the Gen AI disruption, with a net increase in its TAM, just like the earlier disruptions." "We remain positive on the sector from a medium to long-term view; near-term volatility might persist," it noted. According to the report, "Gen AI and agentic AI deployments are now delivering ~15-18% improvement on average with some cases reaching ~30-35% efficiency gains.

Source: Economic Times March 07, 2026 09:10 UTC