Davos 2026: Clients have learnt to operate amid geopolitical uncertainty; it’s the new normal: HCLTech’s C Vijayakumar

HCLTech CEO and MD C Vijayakumar at WEF in Davos

Clients have learnt to operate amid geopolitical uncertainties and continue to invest towards business growth, HCLTech CEO and MD C Vijayakumar said at the World Economic Forum in Davos on January 19 as macroeconomic headwinds persist for the customers of IT services industry.

In an interview with Moneycontrol, Vijayakumar, who has had over 44 client meetings in just three days said it’s still early too gauge customers’ plans for technology spends and budgets for the year.

While geopolitical uncertainties have been there for the past three-four years and clients are now observing the impact of US trade tariff tensions, it has become the “new normal.”

“The general approach a lot of clients are taking is, we need to consider this as a new normal and still continue to make progress in growing the business and delivering new propositions,” Vijayakumar said.

“They're focused on solving the challenges that are caused by different uncertainties, but at the same time, they are looking at how they can leverage technology to transform their businesses? How can they adopt AI and make a difference to their own business?” he added.

Vijayakumar emphasised that customers can no longer hold back tech spending for certain crucial technologies such artificial intelligence (AI).

“You need to be able to leverage new technologies. If you don't do it, your competitors are already getting ahead of you. There is definitely a realization that we just can't hold on. We just need to leverage new technology and continue to make progress,” he said.

Though customers across all verticals have not completely opened up spending, a “good section” of them can’t afford to wait anymore, Vijayakumar said.

‘IT needs to re-imagine business’

When asked if IT services will continue to be the big engine of jobs in India, Vijayakumar said not if they don’t reimagine their business amid ongoing AI productivity gains and overall market disruption.

This may eventually cause the traditional IT services growth running parallel to net headcount addition trend to delink.

“If you don't re-imagine the business, I don't think IT will be the big engine of jobs in India. But, there is so much of an opportunity to do things very differently, for it to really be a strong growth industry. If you're growing, obviously it will mean more talent addition,” he said.

New pockets of spend

During the company’s earnings call for the October-December quarter earlier in January, Vijayakumar had said HCLTech is looking to capture ‘emerging’ new pockets of discretionary spending as traditional tech spending continues to remain slow in global markets.

Even as HCLTech sees some deflation in revenue and deal pricing due to AI infusion led productivity gains, the technology is also opening up newer opportunities for the IT company to explore areas where it expand wallet share with the existing customers.

“AI is also opening up a lot of completely new opportunities, which were not possible before, like physical AI where there are physical objects and machines and other physical things. AI can sense, understand and act, and that's what all robotics and physical AI is about,” noted Vijakumar.

He added, “It's believed that this spend can be close to a trillion dollars by 2030. Of course, that spend has got multiple components, but there will be a very meaningful services as a part of physical AI.”