‘Concerns wrong’: Why Nasscom president Rajesh Nambiar isn’t losing sleep over the AI wave

Rajesh Nambiar, Chairperson, Nasscom

• Nasscom says AI won't wipe out Indian IT services jobs
• IT firms must shift from system integrators to AI partners
• India's tech talent pool gives firms an edge during AI transition

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Nasscom President Rajesh Nambiar has pushed back against fears that artificial intelligence tools will wipe out technology services jobs, even as market anxieties have shaved nearly $50 billion off the market value of Indian IT firms since 2025.

Speaking to The Economic Times, Nambiar said the complexity of large enterprise technology systems and strict regulatory requirements ensure that IT services will remain indispensable despite rapid AI adoption.

“Concerns that such tools, whether it is Claude Cowork or something else, will eliminate technology services are strongly wrong,” Nambiar said, stressing that IT companies continue to play a crucial role in managing and integrating enterprise-level systems.

While some analysts estimate that emerging AI products such as enterprise plugins and automated ERP software could trim annual revenue growth for IT firms by around 2 per cent over the next few years, Nambiar maintained that the $283-billion Indian IT industry is well placed to evolve with the shift.

He noted that technology service providers must transition from being traditional system integrators to becoming AI orchestration partners. According to him, their deep understanding of enterprise workflows and legacy systems will become even more valuable as AI tools become mainstream across industries.

“Tech adoption among enterprises is moving from experimentation to large-scale deployment. When they do, service companies will play a critical role in making sure that they can help these companies make the transition,” he told ET.

Nambiar added that firms which have invested early in platforms, skilled talent and long-term partnerships with global corporations are likely to be better positioned in the changing landscape. India’s vast technology talent pool, he said, provides a structural advantage during this transition phase.

On concerns surrounding US H-1B visa interview delays, Nambiar struck an optimistic note, saying most large IT companies now have sufficient local hiring capacity in the United States to manage operational needs.

Nasscom is set to present its annual strategic industry review at the upcoming Technology and Leadership Forum later this month, where broader trends around AI, talent and enterprise transformation are expected to be discussed in detail, ET reported.