HCL Technologies’ CEO, C Vijayakumar, recently expressed that the well-established business model of India’s IT industry is no longer effective due to the rapid growth of artificial intelligence (AI). Speaking at the Nasscom annual Technology and Leadership Forum in Mumbai on February 24, 2025, he urged companies to adopt a “paranoid” approach in order to stay competitive and foster progress.
Vijayakumar pointed out that the IT industry has seen a steady growth pattern in both revenue and workforce for the past 30 years, which he believes is due for a major change. He mentioned that HCL is challenging its teams to double their revenue while employing half the number of workers, leveraging AI and automation to boost productivity.
Echoing Vijayakumar’s concerns, Infosys CEO Salil Parekh agreed that the industry needs to be vigilant to thrive in this changing environment. He noted that much of the IT sector still relies on traditional input-based models and emphasized the need to shift towards output-oriented and platform-based services.
Vijayakumar also encouraged Indian tech companies to create their own large language models. He warned that depending on existing open-source models could be a risk due to possible geopolitical challenges. By developing proprietary models, companies could secure a competitive advantage in the long run, especially as costs decrease.
Regarding growth strategies, Parekh mentioned that Infosys is looking at significant acquisitions to enhance its capabilities. In contrast, Vijayakumar stated that the size of the company is not as crucial for HCL’s future success.
These discussions highlight a critical juncture for India’s IT sector, urging firms to swiftly embrace AI advancements to maintain their competitive edge in the market.
