The IT industry must transition from an input-based model — where revenue is tied to workforce expansion — to a more output-driven approach, as AI and automation continue to reshape the sector. Speaking at the Nasscom Technology and Leadership Forum 2025, HCLTech CEO and managing director C Vijayakumar highlighted the need for a fundamental shift in how IT services are delivered.
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“For the last 30 years, the industry has grown in a fairly linear fashion, where revenue scaled with headcount. But that model is now outdated,” Vijayakumar stated. “We have been challenging our teams to rethink operations, to generate twice the revenue with half the workforce. AI and automation are making this possible, and businesses that don’t adapt will struggle,” he said.
He stressed that IT services must move from people-driven operations to platform-based models, a transformation he termed “service as a software”. This shift will allow companies to decouple revenue growth from workforce expansion and drive efficiencies through automation.
Echoing these sentiments, Infosys CEO Salil Parekh pointed to AI’s direct impact on productivity. “We are seeing efficiency gains of 7% to 15% in software development alone,” he said. “This is significant, and companies that embrace AI-driven efficiencies will be able to deliver the same output with fewer resources,” he said.
As a result, businesses are completing large-scale projects in significantly shorter timeframes. Vijayakumar cited an example where a five-year project was completed in just three and a half years, demonstrating the accelerated value creation enabled by AI and automation.
On the US market, Parekh highlighted how political and economic shifts could influence business growth. “With discussions around deregulation and economic policies favouring US businesses, we expect a stronger market for tech investments,” he said.
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Regarding potential H-1B visa restrictions under a Trump administration, both executives noted that the Indian IT sector has significantly reduced its reliance on such visas over the past two decades. “The industry has built local capabilities, making us far less dependent on H-1B compared to 20 years ago,” Vijayakumar said.
Additionally, both HCLTech and Infosys executives emphasised the growing role of acquisitions in capability-building,
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