Technology shifts driven by artificial intelligence are reshaping the IT services industry, even as market volatility weighs on technology stocks. Sandip Patel, managing director, IBM India and South Asia, in an interaction with Ojasvi Gupta, spoke about AI-led code modernisation, hybrid cloud strategy and talent development. Excerpts:
Q. How do you view the recent fall in IT stocks and the broader technology transition?
A. The current moment has to be seen in context. IBM has been investing in code modernisation for several years through skilling initiatives as well as our generative AI capabilities. Nearly two years ago we launched watsonx Code Assistant for Z for mainframe environments because we saw the role AI could play in modernising legacy systems. New AI tools are emerging every week, including our own. Translating COBOL code is actually the easy part. The real work lies in redesigning data architecture, replacing run-time systems and preserving transaction integrity and performance that have been built over decades through tight coupling between software and hardware.
Q. How do geopolitical tensions affect India’s technology supply chains, particularly in semiconductors and electronics?
A. India has made significant progress in areas such as the semiconductor mission, the quantum mission and other technology initiatives. The focus on building greater self-sufficiency is meant to counter uncertainties in global supply chains. From that perspective, India is in a strong position. The investments being made to strengthen domestic capability in advanced technologies should serve the country well over the long term.
Q. What are IBM’s priorities in areas such as hybrid cloud, semiconductors and quantum technologies?
A. We describe ourselves as a hybrid cloud and AI company. Our hybrid cloud platform is anchored in Red Hat, which has strong adoption globally and across enterprises in India. Last year we also announced a partnership with Airtel to launch a regulated cloud for local requirements. On the semiconductor side, the two-nanometre chip that IBM is designing is expected to become generally available around the 2027 time-frame.
Q. What are your plans for expanding into tier-2 and tier-3 cities?
A. We will continue to expand our presence in emerging technology clusters. The objective is to take innovation deeper into India’s growth centres and support the country’s digital ambitions. When we look at a new location, it is not just about opening an office. We evaluate the availability of talent, partnerships with universities and the quality of infrastructure that allows people to live close to where they work.
Q. Is India facing a shortage of specialised technology talent?
A. I would not describe it as a shortage. India has a large pool of talent that can be trained and re-skilled. Even in areas such as AI, the country benefits from a demographic dividend that is unmatched globally. Through the SkillsBuild programme we have trained about 2.7 million people so far. Our target is to skill five million adults in AI and cybersecurity by 2030.
Q. How does IBM approach multimodal AI and enterprise AI models?
A. Our view has been consistent. AI must be open by design, enabled in a hybrid environment and increasingly multimodal. The watsonx platform supports multiple models, including IBM’s own models as well as commercial models available in the market. For enterprise use cases, smaller language models that are tailored to specific industries or domains will become increasingly important because they are more relevant and cost effective.
Q. Will IBM pursue acquisitions or other forms of inorganic growth to expand AI capabilities?
A. If you look at our trajectory, we have always pursued both organic and inorganic growth. That approach will continue.