The widespread adoption of Generative AI (GenAI) is expected to increase productivity in India’s $254 billion IT industry by 43-45% over the next five years, according to a recent survey by EY India. The consulting firm’s study highlights the dual impact of internal AI integration within information technology firms and client-driven AI adoption on accelerating productivity.
Enterprises Scaling AI Adoption
Leading IT firms such as Tata Consultancy Services (TCS) and Infosys have already noted a shift from proof of concept (PoC) trials to full-scale production of AI-driven projects. The survey found that 89% of enterprises have started experimenting with GenAI, while 33% have already moved these projects into production.
“Enterprises are moving beyond experimentation to deploy AI at scale. This rapid transition reflects the industry’s confidence in AI’s transformative potential,” said Abhinav Johri, Technology Consulting Partner at EY India.
Key Productivity Gains Across IT Sectors
According to the survey, software development roles will see the biggest productivity boost, estimated at 60%, followed by:
- 52% increase in Business Process Outsourcing (BPO) services
- 47% improvement in IT consulting
These three segments—software development, BPO services, and IT consulting—are expected to contribute between 50% and 60% of the total productivity enhancement across India’s tech sector.
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GenAI’s Impact on Revenue and Cost Reduction
Beyond efficiency gains, the adoption of AI-driven solutions is helping Indian IT firms improve customer service, reduce operational costs, and increase revenue growth. The study suggests that GenAI will play a crucial role in shaping India’s global IT leadership by driving enterprise-wide AI adoption.
As AI-driven automation continues to evolve, India’s information technology industry is poised to redefine workflows and service delivery, unlocking new growth opportunities while maintaining its competitive edge in the global market.
