AI set to reshape Indian IT services as multinationals expand capability centres, says Infosys co‑founder

AI is set to transform India's IT services sector, with multinationals rapidly establishing global capability centres to tap the country's abundant talent, Infosys co‑founder and Axilor Ventures chairman Kris Gopalakrishnan said. He called AI a horizontal technology that will democratise intelligent productivity and first affect software development, where 15‑20% of effort can be automated. Humans will still be needed to check for bugs and to create prompts, creating new roles in data curation and model training. Gopalakrishnan warned that entry‑level recruitment is almost nil and graduates without AI skills will find it hard to secure jobs. He noted that universities lag by three to four years in adapting curricula, so recruitment will stay low while revenues grow modestly at about three‑four percent annually. Despite slower growth, Indian IT firms remain highly profitable, debt‑free and backed by deep client relationships, which has prevented mass layoffs. The shift to AI also opens opportunities for new systems integration and product development, expanding the services market. Gopalakrishnan highlighted that India now hosts roughly 4,500 deep‑tech startups and expects the number to rise to at least 45,000 in the next decade, fueling product innovation and ownership of IP. He stressed the need for greater private‑sector investment in research, especially in health‑care, where 70% of spending occurs in the last three years of life and could be moved earlier through wellness focus. He pointed to his early involvement with IIT Madras Research Park and the growing role of IISc as hubs for future breakthroughs. ## Context