IT OUTSOURCING MODEL
The economics of India's biggest export industry goes topsy-turvy
India’s $315-billion IT industry faces a structural shift as AI boosts productivity but puts pressure on pricing, revenue and entry-level hiring. Clients are demanding more output for less, while spending shifts towards AI, cloud and in-house capabilities.
How AI is transforming India’s BPM industry
India's business process management landscape is remarkably transforming as it embraces artificial intelligence and smarter operations. This change signifies a shift away from age-old cost-centric models, aiming instead for tangible business results via cutting-edge technology. Leaders within the industry highlight the importance of novel workflow strategies, necessitating advanced skills and compliance mechanisms. With AI's growing presence, workforce roles are set to adapt, emphasizing critical decision-making and oversight.
Honda targets 20% cost cuts, faster car development in India with Tata Technologies: Report
Honda Motor aims to decrease costs and development times by outsourcing vehicle production to Tata Technologies in India. The partnership is expected to lead to significant savings of up to 20% and shorter development timelines. Honda is currently facing financial pressures and is shifting focus toward hybrids and cost-cutting measures. The first vehicle under this collaboration is a small SUV targeted for launch in 2028.
Valuations of IT stocks already capture most of AI disruption risk: Chintan Haria
The Nifty IT index’s 25% fall in 2026 may have already priced in much of the threat from AI. Chintan Haria of ICICI Prudential AMC sees selective opportunities in companies positioned to benefit from data engineering, cloud migration, legacy modernisation and AI integration.
AI breaks India’s linear growth model, but campus hiring remains weak: Nasscom’s Rajesh Nambiar
Nambiar said large IT and BPM companies have cut back on campus hiring over the last three years, which is not expected to change while the industry is in the middle of its shift to AI.
AI productivity gains reflecting in salaries would take another 12 months: Wipro’s Jasjit Kang
Wipro’s Jasjit Kang says broad productivity improvements remain elusive as the company looks for stronger AI, problem-solving and learning skills in new hires.
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Managing workplace complexity without giving up enterprise control
As enterprise requirements become more complex, the workplace is moving beyond a real estate transaction. Kunal Mehra, President & Co-CEO, Table Space, discusses why enterprise managed workspace is fundamentally different from coworking, why experience is becoming a strategic differentiator, and how technology and international capability will shape the next generation of workplace platforms.
15-year setback on cards? Nifty heading for worst annual performance since 2011
As 2023 unfolds, the Nifty index appears headed for its most disappointing year in a decade and a half. Key contributors to this downturn include high valuations and a flight of foreign investors. The IT sector continues to struggle amid geopolitical conflicts that have exacerbated oil prices and inflation fears. While local institutions lend some assistance, international investors remain reluctant.
Tonbo Imaging India gets SEBI nod for IPO; defence electronics maker offers over 1.8 crore shares
Tonbo Imaging has received SEBI approval for its proposed IPO, comprising an offer for sale of up to 18.09 million shares. The defence electronics maker has a global footprint, with more than 28,000 systems deployed across 24 countries.
ETMarkets Smart Talk | 2-3 crore wealth creators could enter PMS: Sandeep Jethwani on PRIM and India’s wealth boom
SEBI's new PRIM framework lowers the PMS entry limit to Rs 25 lakh, opening professional portfolio management to 2-3 crore Indian investors. Dezerv Co-founder Sandeep Jethwani discusses how PRIM, global diversification, and Independent Fund Managers will reshape India's wealth landscape while shifting focus towards risk-adjusted returns.
a16z’s Raghuram isn't writing off India AI yet; insurers weigh new rules
Happy Monday! a16z’s Raghu Raghuram said India can build frontier AI companies by using its talent. This and more in today’s ETtech Morning Dispatch.
Too early to write India off in the global AI race: Andreessen Horowitz’s Raghu Raghuram
India has few frontier AI model companies and limited computing capacity, but according to a16z managing partner Raghu Raghuram, the country should not be written off. In an interview with ET, Raghuram said Indian startups could first build services on open-weight models before eventually developing their own.
Disney internal memo hints at upcoming layoffs as legal chief talks about 'hard choices'; job cuts may start next week
Disney is revamping its legal and global affairs department, which could lead to layoffs. Chief Legal Officer Horacio Gutierrez has noted that automation may streamline workflows, potentially impacting staff levels. A memo stated that major organizational changes are necessary, which will entail tough choices around resources and personnel. These adjustments aim to enhance Disney’s ability to serve its audience more effectively. Layoffs could begin as soon as next week.
Payoneer India Cross-Border Excellence Awards: A diverse winner list reflects India’s growing cross-border trade
Services exports in India have surged to a record $421.3 billion, surpassing estimates, in FY26, as total exports hit an unprecedented $863 billion. The trade is well on its way to meet the $2 trillion export target by 2030-31, yet the companies bringing about this impetus remain largely unknown. Payoneer India Cross-Border Excellence Awards, in association with The Economic Times, have identified, recognised, and felicitated these businesses/individuals/ideas. Read on!
Virtual pharma API firm HRV preparing for IPO, DRHP likely in H1 of 2027: Sources
HRV Pharma CEO Hari Kiran Chereddi says investing in capacity at partner facilities, exploring acquisitions for market access; forecasts Rs 1,000 crore revenue in FY28
H-1B curbs push Indian tech firms to rethink US talent deployment
H-1B registrations by the largest information technology staffing and outsourcing firms fell 92% to 2,055 from 24,946, while consular-processing requests dropped nearly 97% between the FY25 and FY27 registration cycles, according to US government data.
How AMD went from Intel’s smaller rival to a $1 trillion AI contender
AMD achieved a $1 trillion market capitalisation as of September 21. The company’s rise is attributed to its success in AI computing and product innovation. Under CEO Lisa Su, AMD has transformed its business and expanded its offerings beyond CPUs. Recent acquisitions have bolstered AMD's capabilities in graphics processing and data center solutions.
Deliveries over deployment: IT firms must reassess AI integration as pricing pressures rise, says BCG
BCG analysed more than 40 technology services providers and over 100 brand positioning claims across their websites, earnings calls and investor presentations and found more than 90% were talking about the same core themes.
ISM 2.0: Several chip companies plan to invest in India in 6 months, says Ashwini Vaishnaw
India’s second semiconductor mission has drawn nearly $12 billion in industry interest, with investments expected to begin within six months, Ashwini Vaishnaw told ET. The IT minister also called for greater responsibility from AI companies on safety.
OFSS shares tumble 7%; Wipro, Coforge, Infosys shares down up to 2%. Why are IT stocks under pressure today?
Shares of OFSS fell over 7% while top IT stocks including Infosys, Wipro, and Coforge dropped up to 2% on Monday. The drag comes following reports of Oracle's $18 billion data centre debt pressure and US President Donald Trump extending the $100,000 H-1B visa fee by another year.
Pawan Khera flags H-1B fee extension, warns of impact on Indian IT talent
The US administration has renewed a USD 100,000 fee for certain H-1B visa petitions. This move could significantly affect Indian IT professionals and students seeking employment. Smaller companies may now avoid sponsoring H-1B visas altogether due to increased costs. Indian professionals might explore opportunities in the UK, Canada, and Australia. This policy change aims to strengthen program integrity and curb perceived abuses.
Applied Materials' Prabu Raja says $5 billion investment in India to drive firm's global R&D
The US company that supplies equipment and services for semiconductor manufacturing is set to invest about $5 billion over 10 years in Bengaluru for a new research and development facility.
Anthropic quietly sets up biology lab as it ramps AI drug program
At a time when fears of AI are gripping the public, the startup has built a wet lab, or place for physical experiments, in the San Francisco Bay Area, two people familiar with the matter said. Anthropic has said it wants to unlock treatments for rare diseases, and its biology work has gone beyond "in silico" or computer evaluations.
"Will resolve issue and start delivering": HAL CMD Ravi Kumar on Tejas LCA Mk1A
Hindustan Aeronautics Limited is working to resolve Tejas Mk1A software integration challenges. The company will deliver seventy Hindustan Turbo Trainer-40 aircraft over four to five years. Prototypes for the CATS Warrior autonomous drone are now under fabrication. Four Dhruv Next Generation helicopters are being handed over to Pawan Hans Limited. Two Light Combat Aircraft Tejas trainer jets are also being delivered to the Indian Air Force.
Shaping dreams into destiny: Ajay Piramal shares six career lessons for young leaders
Piramal Group chairman Ajay Piramal advised young leaders at an awards ceremony. He emphasized embracing adversity and making independent decisions for progress. Piramal also highlighted the importance of purpose and values in business operations. He encouraged giving back early and maintaining life's priorities. These lessons guide individuals as India moves towards economic growth.
Valmiki Leela Capital eyes Rs 3,000 crore IPO pipeline over 18 months
Valmiki Leela Capital has built a ₹3,000 crore IPO pipeline for the next 12-18 months across renewable energy, power, pharmaceuticals, packaging and electrical goods after completing its maiden ₹460-crore Deepa Jewellers mainboard mandate with strong investor subscription.
AI restraint debate lifts outlook for India tech services stocks
Indian technology services stocks may see a reprieve from recent declines. Calls to slow artificial intelligence development could boost these beaten-down companies. Investors might bet on a longer disruption timeline for AI's impact. Valuations also present an attractive opportunity for renewed investor interest. This shift could lead to short-covering and fresh buying in frontline IT stocks.
‘AI not worth pursuing if...’: Microsoft CEO Satya Nadella warns against AI slipping beyond human control
Microsoft CEO Satya Nadella urged strict human control and deliberate pacing in AI development. His comments follow Anthropic CEO Dario Amodei's proposal to slow AI progress and use independent safety evaluators, an initiative endorsed by industry leaders like Sam Altman and Elon Musk.
RBI Deputy Governor Rohit Jain flags speed, concentration and opacity as fintech risks; says technology must serve customers
RBI Deputy Governor Rohit Jain warned financial institutions and fintech firms that rapid adoption of emerging technologies brings risks around speed, concentration and opacity. He said institutions must ensure technology works fairly, reliably and safely for customers, while retaining responsibility for outcomes even when computing, cloud infrastructure or models are outsourced.
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