The era of agentic AI has arrived, and surprisingly, Indian IT is well-prepared for this revolution. What is even more surprising is that even mid-sized and small IT firms are ready to embrace this technology. These companies are taking the acquisition route to acquire the necessary capabilities. A recent example is LTIMindtree, which announced a $6 million investment in Voicing AI, a US-based startup specializing in human-like AI voice agents. This investment aims to bring human-like voice capabilities in over 20 languages, with conversational, contextual, and emotional intelligence. LTIMindtree has also formed an alliance with GitHub to train its workforce on the GitHub ecosystem using the Copilot coding tool. Similarly, Mphasis has focused on conversational AI to enhance user experiences. In July, the company launched NeoCrux, a tool that uses AI agents and orchestrators to streamline software development cycles and improve developer productivity. In October 2023, Mphasis acquired Silverline, a New York-based Salesforce partner, for $132.5 million. This acquisition aligns with the company’s strategy to drive customer experience transformation and enable conversational AI automation. It is evident that Mphasis has decided to embrace AI and agentic AI for customer interactions. While it is unclear if the acquisition of Silverline has increased Mphasis’s current capabilities, the impact is visible. On the other hand, Persistent Systems is addressing AI-related privacy challenges. In September, the company acquired Pune-based data privacy consultancy Arrka for ₹14.4 crore ($1.7 million). According to Persistent Systems CEO Sandeep Kalra, Arrka’s frameworks and privacy management platform ensure a scalable and governance-driven approach, which is crucial for successful AI implementations. The approach of mid-sized IT companies differs from that of larger IT giants like TCS, Infosys, and Wipro, who have chosen to develop a different strategy for building AI agents for their clients. In the latest quarterly results, TCS reported $1.5 billion in bookings with AI, while Infosys has started building small language models and multi-agent frameworks for its clients. A similar trend was observed at Wipro, HCLTech, and Cognizant. TCS, India’s largest IT services exporter, launched a new AI-focused business unit, AI.Cloud, in May by merging its cloud and AI divisions. Infosys, the second-largest IT firm, unveiled Topaz, an AI suite offering solutions and services to its clients. However, mid-sized IT companies are positioning themselves differently. According to Nachiket Deshpande, COO at LTIMindtree, Indian IT firms prefer not to build these capabilities in-house. Instead, they opt for acquisitions to quickly acquire the necessary expertise and stay ahead in the competitive market. This approach differs from that of larger IT companies, who prefer to develop these capabilities in-house. Overall, it is evident that Indian IT firms, both big and small, are embracing AI and agentic AI to stay ahead in the rapidly evolving technology landscape.
