Indian IT giants HCL, Infosys, TCS and Wipro reported strong financial results in their latest quarterly earnings, fueled largely by rising demand for artificial intelligence (AI) technology.
Though hiring remained slow, revenue and margins grew substantially across India’s ‘big four’- HCL’s revenue rose 5.3% to $3.41 billion; Infosys increased margins by 0.1% to $4.66 billion; TCS grew revenues by 2.9% to $7.28 billion.
Despite a 6.9% decline to $2.66 billion for Wipro, its CEO Thierry Delaporte struck an upbeat tone, stating “It’s been a strong performance this quarter and it gives us good optimism for the quarters to come.”
“Viral” AI for business strategy
On the upward curve, AI is a dominant feature contributing to the outlook on the future.
“Almost every discussion with clients involves some element of Generative AI,” said Infosys CEO Salil Parekh, while his HCL counterpart C Vijakumar revealed his firm had 30 wins on their books in Gen-AI projects.
That sentiment was further endorsed by Wipro’s Delaporte who commented, “AI is now moving from the curiosity and experimentation stage to becoming vital, I was going to say viral as well, to business strategy. In fact, we can confidently say that every long-term large deal now has an AI component.”
TCS also declared “AI.Cloud led the demand among Service Lines with strong momentum sustaining for Cloud migrations and increasing interest among customers for AI and Generative AI,” in a powerful indicator of the importance of AI for India’s leading businesses.
On staffing levels, HCL stood apart as the only one of the four firms to increase its numbers. Over the quarter, they recorded an added 3617 to their headcount, up 1.6% whilst the rest saw a decline, contributing to a total loss of 12,637 employees for the ‘big four’, collectively.
The automotive and aerospace industries were highlighted as key markets targeted for growth, with AI remaining a dominant trend leading to investment and returns.
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