IT services industry, which is facing headwinds amidst a challenging macroeconomic environment with clients reducing discretionary spends. With Donald Trump slated to assume the President’s office charges for H-1B visa may also see a rise. Rajesh Nambiar, president, Nasscom in an interview with Padmini Dhruvaraj, however maintains that the industry is poised for recovery in FY26 on the back of drivers like AI, GenAI, and DeepTech innovation. He said that challenges like H-1B visa rule changes are being addressed by Nasscom. Demand is high for AI, Cloud, and Cybersecurity skills, while GCCs are evolving into global innovation hubs leveraging India’s talent advantage. Excerpts:
Q. How do you view the IT industry’s performance so far during the current fiscal?
A. The technology industry in India stands at a pivotal moment. Key drivers like rapid advancements in AI and GenAI, steady growth in tech investments, an expanding domestic market, the rise of GCCs, a stronger focus on Engineering R&D, and a thriving DeepTech startup ecosystem are attracting significant investments into the sector. The challenges of FY25’s first quarter — such as delays in decision-making, hiring slowdowns, and supply chain disruptions — are now easing. With these factors, along with improving global conditions, the industry is anticipated to be on a recovery path toward growth in FY26.
Q. How do you see AI/GenAI adoption by enterprises? How do you see agentic AI development in 2025?
A. Today, Generative AI is at a pivotal juncture, with the potential to reshape industries worldwide. While it may take time for widespread adoption, the opportunities it offers are limitless. The true advantage will belong to those who can scale AI effectively. Businesses are expanding their services to include GenAI-driven analytics, intelligent automation, and personalised customer engagement solutions. However, tapping into these opportunities requires significant investment in building the right infrastructure and developing skills for a seamless transition. The most thrilling advancements are occurring in agentic systems and reasoning. This advancement has the potential to enable India to leap forward and lead the next wave of this technology revolution. The progression of Agentic AI is anticipated to enhance AI’s role in various sectors, including healthcare, finance, and customer service, by enabling more sophisticated and efficient task automation. However, challenges such as the need for dedicated infrastructure, ethical considerations, and the development of robust oversight mechanisms remain critical to address.
Q. What skills are most in demand in the IT industry today?
A. The industry is witnessing a surging demand for skills in emerging technologies, particularly in AI, Data, Cloud, and Cybersecurity. The focus is shifting from job roles to relevant skills and continuous upskilling, which are becoming critical for staying competitive. Building expertise in niche and advanced tech domains, along with prioritising skill development in emerging technologies and business fundamentals, will be essential for the industry’s sustained growth. Beyond technical proficiency, there is a growing need for professionals with strong analytical and design thinking abilities, ethical and legal awareness, and robust project management skills to drive innovation and success in the evolving landscape.
Q. How do you see the GCC landscape evolving?
A. The GCC landscape in India is transforming from traditional service delivery centres to strategic hubs of innovation and digital excellence. With over 1,700 GCCs currently operating in India, generating $64.6 billion in revenue and employing 1.9 million professionals, the sector shows strong growth potential. This growth can be attributed to key factors. First, the rise of distributed work and ‘presence anywhere’ models has significantly accelerated the growth of GCCs. Between FY19 and FY24, more than 400 new GCCs and 1,100 new centres have been established in India. These hubs, including 220 in emerging Tier-II and Tier-III cities, host some of the largest engineering teams outside their HQs. Around 40 global unicorns now have an India GCC presence. Second, India’s talent advantage solidifies its status as the GCC capital of the world, housing 28% of global STEM and 23% of software engineering talent, with over 120,000 AI professionals driving innovation.
