India’s two biggest IT services companies, Tata Consultancy Services (TCS) and Infosys, reported their third-quarter earnings for FY24 on January 11. Amid a seasonally weak quarter and an uncertain demand environment, all eyes were on their generative AI updates. However, they shied away from sharing definitive numbers or updates on deal pipeline opportunities or prospects of revenue in coming quarters.
Peter Bendor-Samuel, founder of Everest Group, believes most of the PoCs (almost 90%) undertaken in 2023 will not move into production in 2024. “However, 10% which does move (to production) will indicate to the market where gen AI does work, and we expect significant opportunities to arise in these areas for the tech services firms by the third quarter of 2024,” he said.
