The IT services industry in India is undergoing a major shift, with companies merging to build scale and refocus on the economics of AI beyond early experiments. This week, two mid-sized firms announced consolidation plans that will reshape the sector, while global tech leaders are racing to control the next layer of AI infrastructure—developer tools, models, and enterprise-grade deployment.
Two Indian IT firms merge to create a $1 billion company by 2028
ITC Infotech and Happiest Minds Technologies are combining in a deal that will create a technology services company targeting $1 billion in revenue by fiscal year 2028. The merger begins with ITC Infotech acquiring a 22.1% promoter stake in Happiest Minds for about ₹1,330 crore, followed by a full business consolidation.
The combined entity will employ over 19,000 people and serve more than 800 customers, offering capabilities in AI, cloud, cybersecurity, and enterprise transformation.
The move reflects broader industry pressure on mid-sized IT services firms to scale quickly in an AI-driven market. Smaller players are struggling to compete with larger rivals that can invest in reusable data infrastructure and standardized AI architectures. For ITC Infotech, the deal expands its footprint in digital engineering and AI-led services, while Happiest Minds gains financial backing to accelerate its own AI initiatives.
Hexaware leadership change to sharpen AI strategy
The firm named Vivek Jetley, a senior executive from EXL, as its CEO-designate, effective October 28. Jetley brings experience in data, analytics, and AI—areas Hexaware is prioritizing as enterprises rethink technology spending amid the rise of generative and agentic AI.
His appointment comes as Hexaware faces slower growth in a market where AI adoption is accelerating. The mandate includes scaling the company’s AI-led services model and improving operational efficiency, particularly in areas where AI can reduce costs and automate workflows. The outgoing CEO, Srikrishna Ramakarthikeyan, will stay on as a senior adviser during the transition.
Enterprises demand more than pilots, AI must scale economically
Capgemini’s India CTO, Nisheeth Srivastava, highlighted a critical shift in enterprise AI discussions: the focus is no longer on launching pilots, but on making the second AI deployment faster and cheaper than the first. This requires standardized data foundations, shared technology architectures, and governance frameworks, rather than treating each AI project as an isolated experiment.
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For CIOs, the challenge is building infrastructure that supports multiple AI use cases at scale. Early successes with AI pilots often fail when organizations attempt broader rollouts, Srivastava noted. The real test is whether companies can reuse data, models, and processes across departments, reducing the cost and complexity of each new implementation.
This economic reality is driving consolidation in India’s IT services sector. Mid-sized firms like ITC Infotech and Hexaware are merging or reshaping leadership to compete with larger players that already have the scale to invest in reusable AI systems. The shift also aligns with global trends, where vendors are moving beyond model demonstrations to focus on integration, governance, and measurable business outcomes.
Google Cloud partner launches Gemini Enterprise Experience Centre
Shivaami, a Google Cloud partner, has opened a Gemini Enterprise Experience Centre in Mumbai, designed to help Indian businesses transition from AI experimentation to deployment. The centre showcases enterprise-grade AI, cloud modernization, and agentic AI use cases, areas where Indian CIOs are increasingly prioritizing integration over standalone model testing.
Adobe leadership transition highlights pressure on traditional software firms
Adobe named Anil Chakravarthy as its new CEO, with longtime leader Shantanu Narayen moving to executive chairman. Chakravarthy, who currently heads Adobe’s Customer Experience Orchestration business, takes over at a time when the company faces competition from AI-driven design and productivity tools.
OpenAI unveils GPT-6 Astra for complex tasks
OpenAI introduced GPT-6 Astra, positioning it as a major advance in multi-step task execution, coding, and professional workflows. The model represents a shift from AI systems that generate answers to those that can perform complex, multi-stage operations, such as interacting with applications, writing code, and automating enterprise tasks with minimal human input.
Nvidia expands AI stack with $12.9 billion Hugging Face acquisition
Nvidia’s $12.9 billion acquisition of Hugging Face further signals the race to control the AI development stack. The deal extends Nvidia’s reach beyond GPUs into open-source models, developer tools, and communities, critical components as enterprises move from model training to large-scale AI deployment.
