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Indian firms can tweak to ride the AI wave

Published on: Feb. 12, 2026, 11:14 p.m. | Source: The Economic Times

Impact of AI-led disruption could be widespread in India's technology industry. But hold your horses. The intensity of market reaction may be overdone. Frontline IT companies have been trimming their workforce at a pace that does not signal a breakdown of the outsourcing model just yet. GCCs in India have gone about adjusting payrolls even more gingerly. The pipeline of inward investment in GCCs is widening as more companies eye India for its technical talent. Earlier this month, GoI unveiled a tax framework for the tech industry to encourage investment.

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