Synopsis
The Indian technology sector faces major changes due to AI. Srikanth Velamakanni, the new Nasscom chairperson, highlights both challenges like hiring adjustments and opportunities. He believes India is well-positioned to meet the massive demand for technology talent. Geopolitical factors add complexity, but the sector is prepared for these shifts and the adoption of AI across India.Listen to this article in summarized format
On Thursday, Velamakanni was named chairperson of industry body Nasscom. Kishor Patil, CEO and managing director of KPIT, was appointed as the vice chairperson.
Velamakanni, however, said that AI will also open up opportunities for the Indian technology sector in the long run.
“We have seen a lot of change around the world ever since Covid began, and the environment around us is changing very fast, especially in the context of AI,” he said. . This leads to a huge structural shift in the kind of work we do and how we perform.”
According to him, there will be 1000x more demand for technology, and there is a huge gap between what is required and what we have.
“There is no other nation in the world than India that can supply (this talent). In that sense, not only do we have an incredible opportunity, but we also have the right setup to go and win this place,” Velamakanni said.
Most of the legacy systems in large banks run on programming language, COBOL and platforms such as Claude Code can compress the timeline and cost for modernising them. According to him, while this could open up the $1.6-trillion opportunity for Indian tech companies.
The IT sector is undergoing a massive shift.
Anthropic’s Claude Cowork triggered a massive selloff in IT stocks in February. The IT sector saw muted growth in FY25, with some companies seeing decline in headcount. The sector is also seeing layoffs in the industry.
Velamakanni agreed that there is a transition underway. He pointed out that companies will make decisions to structurally prepare them for what is coming ahead.
“What you are seeing is a result of some of that… I do think that this kind of adjustment will happen for some more time, as we completely get ready for the new norm,” he said.
Geopolitics is adding another layer of complexity.
“There is no doubt that it has never been harder to run a company today because of the changes in geopolitics,” he said, adding that while these uncertainties might result in delayed decision-making, the Indian sector can handle the uncertainty.
Velamakanni said Nasscom will also focus on preparing the world for what is coming ahead. In addition, not just corporate but also the rest of India need to adopt AI.
“We are not as tech-intensive as we ought to be as a country. And if you can increase the tech intensity across corporate India and also the government, because there's an enormous amount of talent available,” he said.
Velamakanni takes over from Sindhu Gangadharan, managing director of SAP Labs India.
