📢 Agentic AI Revolution: How Mid-Sized Indian IT Firms Are Leading the Charge

• Mid-sized IT firms in India are adopting agentic AI through strategic acquisitions.

• LTIMindtree invested $6M in Voicing AI for human-like voice agents in 20+ languages.

• Mphasis launched NeoCrux and acquired Silverline for AI-powered customer experience transformation.

• Larger IT firms like TCS and Infosys are building in-house AI solutions instead.

• Challenges for Indian IT firms: High costs and rapid obsolescence of generative AI models.

  SOURCE: https://analyticsindiamag.com/ai-origins-evolution/agentic-ai-is-now-on-mid-sized-indian-its-mind/

• Who: Indian mid-sized IT firms (e.g., LTIMindtree, Mphasis, Persistent Systems)

• What: Adopting agentic AI via acquisitions and partnerships.

• When: Recent investments and initiatives, including 2023 acquisitions.

• Where: Across India and collaborations with international startups.

• Why: To remain competitive without the high cost of building in-house AI models.

🏢 Adoption Through Acquisitions

The era of agentic AI has arrived, and mid-sized Indian IT firms are taking bold steps to stay ahead. Instead of building capabilities in-house, they are focusing on acquiring startups and forming alliances.

• LTIMindtree’s recent $6 million investment in Voicing AI, a US-based startup, highlights this approach. The goal? To deliver human-like voice agents in over 20 languages.

LTIMindtree also partnered with GitHub Copilot to train its workforce in AI-driven coding.

• Mphasis introduced NeoCrux in July 2023, an AI tool improving developer productivity.

In October, Mphasis acquired Silverline, a New York-based Salesforce partner, for $132.5M, enhancing AI-driven customer experience.

• Persistent Systems addressed AI-related privacy concerns by acquiring Arrka, a Pune-based privacy consultancy, for ₹14.4 crore ($1.7M).

India’s largest IT firms—TCS, Infosys, Wipro, HCLTech, and Cognizant—have chosen to build AI solutions in-house instead.

• TCS launched AI.Cloud, a dedicated AI-focused business unit, in May 2023.

• Infosys introduced Topaz, an AI suite offering solutions and services, with custom language models and frameworks.

However, as Mohandas Pai, founder of Aarin Capital and former Infosys CFO, explained:

"Indian IT services companies are not product companies. Building large AI models requires disproportionate R&D investment, which they are not structured for."

According to Nachiket Deshpande, COO of LTIMindtree:

1. Generative AI costs are prohibitive: Building models in-house doesn’t justify the investment.

2. Rapid innovation leads to obsolescence: AI models become outdated quickly, requiring continuous redevelopment.

3. Focus on adoption, not creation: Mid-sized firms prioritize leveraging startups for innovation while maintaining flexibility for growth.

Deshpande emphasized that agentic systems—those automating large parts of user personas—are vital for improving productivity.

🌟 Why It Matters

• Agentic AI is transforming the IT services landscape, enhancing productivity and innovation.

• Mid-sized firms are leveraging partnerships for cost-effective AI adoption.

• The shift to persona-centric automation could redefine how businesses operate and serve clients.

✅ What You Should Do

• For Businesses: Explore partnerships or acquisitions for AI adoption without heavy R&D investments.

• For IT Professionals: Upskill in agentic AI systems and tools like GitHub Copilot to stay ahead.

• For Startups: Position your AI innovations as scalable solutions for IT firms looking to augment capabilities.

• For Investors: Focus on startups building agentic systems and other AI-driven innovations for acquisition-ready firms.

The conversation around agentic AI has shifted mid-sized IT firms into the spotlight, as they find cost-effective ways to lead the revolution. The result? A more dynamic and competitive Indian IT sector, ready to meet the future head-on.

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