Global IT consultancy and services company Xebia is now generating a quarter of its revenue from artificial intelligence (AI), with plans to triple this figure within three years, Global CEO, Anand Sahay told FE. Speaking about the company’s focus, Sahay explained that AI has become integral to their operations and growth strategy, particularly through initiatives such as embedding AI in software development and creating small language models (SLMs).
“Our revenue from AI stands at 25% today, and this is only set to grow. We see AI as a driver of transformation, not just productivity,” Sahay said.
AI has significantly enhanced developer productivity at Xebia. The time required for developers to execute tasks has been reduced by 60%, while the time needed to create use cases has seen a 30% cut. These efficiencies have been achieved by leveraging AI tools such as co-pilots and embedding AI within the software development lifecycle (SDLC), Sahay said.
“Through AI, our developers have become more efficient. Tasks that took hours or days can now be completed much faster, freeing up time for innovation,” he said.
He added that the use of AI has also elevated skill levels. “A 4-5 year experienced developer is now operating at the level of someone with 12 years of experience, thanks to the capabilities AI brings to the table,” he said.
Xebia has also identified growing demand for SLMs, which are tailored versions of large language models (LLMs) customised for specific enterprise needs. Sahay explained that the company is focusing on building SLMs for clients, as well as for its internal operations in departments such as HR and finance.
“We are already distilling large language models and experimenting with our own SLMs. These models are helping automate processes, reduce operational costs, and introduce smarter decision-making within organisations,” he said.
Acquisitions Driving AI Growth
Xebia’s growth strategy has also been bolstered by targeted acquisitions. The company has made several acquisitions in recent years, aimed at geographic expansion, deepening technological expertise, and adding new capabilities. For instance, Xebia acquired a firm in Poland for market expansion and a company specialising in intelligent automation in Jaipur, India, to broaden its service offerings.
“Once these smaller companies became part of Xebia, they gained access to our global sales network, enabling rapid scaling in regions like the US and Western Europe,” Sahay said. “Despite 2023 being a challenging year, our acquisitions have performed as expected.”
Looking ahead, the company plans to focus on acquisitions in the US, particularly in niche areas like high engineering and AI-driven services.
“America remains the most lucrative market for us. While large IT firms are diversifying outside the US, we still see significant demand for AI and enterprise transformation in the region,” he said.
