Indian information technology companies are strategically pivoting from traditional services to artificial intelligence-driven platforms, fundamentally changing how they engage with clients and deliver value. According to industry experts, this transformation goes beyond cost efficiencies, with new AI deals signed by Indian IT firms creating deeper client relevance and opening new revenue streams.

Strategic Transformation Beyond Cost Efficiency

Prashanth Kaddi, Partner at Deloitte India, acknowledges that despite the industry's AI pivot, a significant gap persists between AI's promise and what companies can actually realize. Speaking exclusively to NDTV Profit on December 30, Kaddi emphasized that bridging this gap represents a journey that every firm is helping its clients navigate.

The transformation involves multiple strategic approaches beyond simply acquiring AI companies. Indian IT firms are pursuing complementary acquisitions, particularly in services around ERP and CRM systems, while simultaneously focusing on organic growth initiatives.

Multi-Pronged Acquisition Strategy

Kaddi outlined the comprehensive approach Indian IT companies are adopting:

• Complementary acquisitions in specialized service areas
• Organic growth in AI capabilities
• Strategic coherence across client offerings
• Global AI services acquisitions that bring both client bases and solution capabilities

"Each of these strategies has to be a coherent set to make sense of that particular client or set of offerings," Kaddi explained. He noted that many acquisitions target AI services firms globally, allowing Indian companies to acquire established client relationships alongside potential AI solutions for existing customer bases.

Major AI Deals Shape 2025 Landscape

The industry's AI transformation gained significant momentum in 2025, with several major deals highlighting the trend:

Coforge's acquisition of US-based artificial intelligence company Encora stands out as a landmark transaction, valued at $2.35 billion (approximately ₹21,138 crore). The deal structure involves share swap arrangements and equity sales to institutional investors, demonstrating the scale of investment flowing into AI capabilities.

Optimistic Outlook for 2026

Despite acknowledging implementation challenges, Kaddi remains optimistic about Indian IT companies signing more AI deals in 2026. He expects that strategic acquisitions will generate valuable AI talent, creating a positive cycle of capability building and market expansion.

The expert cautioned that how these AI processes will be embedded—both in terms of service offerings and client adoption capacity—remains to be seen in upcoming quarters. This measured approach reflects the industry's recognition that successful AI integration requires careful planning and execution.

Industry Transformation Continues

The pivot toward AI platforms represents a fundamental shift in how Indian IT companies position themselves in the global market. Rather than competing primarily on cost advantages, firms are building sophisticated AI capabilities that create deeper client partnerships and sustainable competitive advantages. This transformation positions Indian IT companies to capture greater value from the ongoing digital revolution while helping clients navigate their own AI adoption journeys.

India's automotive export landscape witnessed a significant shift in November, as utility vehicle exports surpassed passenger car shipments for the first time. This milestone reflects the growing domestic preference for SUVs, MPVs, and MUVs, which is now translating into export market dynamics.

November Export Performance

The November data from SIAM revealed a notable change in India's vehicle export composition:

This represents the first instance when utility vehicle exports exceeded passenger cars across all categories, marking a departure from the traditional dominance of car exports in India's overseas shipments.

Fiscal Year Trends and Growth Patterns

The transformation in export patterns has been gradual but consistent. Historical data shows cars previously dominated India's export basket, with passenger car exports reaching 4.30 lakh units in FY24 compared to utility vehicle exports of 2.30 lakh units.

The current fiscal year demonstrates the narrowing gap between these categories:

Utility vehicle exports have shown significantly stronger growth momentum, rising by nearly 30% compared to the previous year period.

Market Leadership and Key Players

Maruti Suzuki maintains its position as India's largest vehicle exporter, contributing more than 47% of all passenger vehicles shipped overseas, including cars, utility vehicles, and vans. In the passenger car segment specifically, Maruti Suzuki and Hyundai together account for approximately 81% of exports in the current fiscal year.

The utility vehicle export segment shows similar concentration, with Maruti Suzuki leading the category. Other key exporters include:

• Nissan
• Toyota
• Hyundai

Maruti's dominance in utility vehicle exports is particularly notable, with the company's total UV exports nearly equaling the combined shipments of all other manufacturers in the segment.

Product Mix and Export Characteristics

The export composition reveals interesting patterns in vehicle preferences. Sub-four-metre SUVs constitute approximately 62% of total utility vehicle exports, highlighting the global appeal of compact utility vehicles. This trend aligns with the broader export pattern, where eight of the 10 most-exported passenger vehicles from India are under four metres in length.

While electric vehicle exports are showing growth, compact formats continue to lead the export mix, suggesting strong international demand for India's small-format vehicle expertise.

Future Outlook

Based on current trends, industry analysts expect utility vehicle exports to potentially overtake passenger car exports on an annual basis in the future. This projected shift would represent a fundamental change in India's automotive export profile, reflecting both domestic market evolution and international demand patterns for utility vehicles manufactured in India.