According to a recent survey conducted by consulting firm EY India, the rising adoption of generative artificial intelligence (GenAI) may propel productivity within India’s $254-billion software sector by 43 to 45 percent over the next five years.
The anticipated productivity gains are expected to impact 500 roles across the IT industry. This improvement will stem from two primary factors: the internal integration of GenAI technology by the IT sector and the advancement of client projects from proof of concept to full-scale production.
Leading IT firms like Tata Consultancy Services and Infosys have underscored the growing trend of AI utilization among their clients for new initiatives. EY India’s survey indicates that 89 percent of these companies have commenced trials of GenAI projects, with one-third of them successfully moving into production.
“Enterprises are transitioning from experimentation to large-scale deployment of AI. The swift shift from proof of concept to widespread adoption demonstrates the industry’s growing confidence in the capabilities of AI,” stated Abhinav Johri, a technology consulting partner at EY India.
The survey revealed that software development roles are projected to see the most significant productivity gains, estimating an increase of about 60 percent. This is followed by BPO services with a 52 percent boost and IT consulting with a 47 percent rise.
Collectively, the areas of software development, BPO services, and IT consulting are expected to contribute between 50 percent and 60 percent of the total productivity improvement in technology services, according to the findings.
Executives surveyed by EY India noted that the growing implementation of AI is enhancing customer service while also reducing costs and fostering revenue growth for the IT sector.
© Thomson Reuters 2025
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