IT cos not yet getting full-fledged GenAI projects
However, receiving GenAI projects relating to data standardisation; Enterprise use cases are still not available
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GenAI is a new thing and that is the reason that it is getting at the consumer side first. Companies like Apple, Google and others are opting for it. On the business side, it will take time as there are no use cases built on it. Right now, companies are figuring out how to standardise the internal data. - V Balakrishnan, Chairman, Exfinity Ventures & former CFO of Infosys, tells Bizz Buzz
Order Pipeline
- Domestic IT firms yet to give any concrete biz from this new tech
- Accenture bagged $2-bn deals, TCS received $900-mn projects in GenAI
- Full-fledged projects concerning business problems may take 1-2 yrs
Bengaluru: Indian IT firms are currently receiving projects related to data standardisation in the generative AI (GenAI) space from clients and full-fledge projects concerning bigger business problems will take time to be on the market.
According to analysts, enterprise use cases are still not available that leverages GenAI due to nascent nature of the technology domain.
“GenAI is a new thing and that is the reason that it is getting at the consumer side first. Companies like Apple, Google and others are opting for it. On the business side, it will take time as there are no use cases built (on it). Right now, companies are figuring out how to standardise the internal data. Once, that is done, probably projects will come. That will probably take another one-two years,” V Balakrishnan, Chairman, Exfinity Ventures & former CFO of Infosys, told Bizz Buzz.
“One (kind of project) is standardisation of the data. As the data is unstructured, it has to be structured for training the algorithm. So, IT firms are now getting this kind (standardisation of data) project,” he added.
While there is a lot of discussion about GenAI among Indian IT industry, domestic IT firms are yet to give any concrete business value created from this new technology area. Globally, Accenture has said that it bagged deals worth $2 billion in this new technology domain in the first three-quarters of the ongoing fiscal with a revenue conversion of $500 million year-to-date. Accenture follows September-August financial year cycle.
Among Indian IT firms, Tata Consultancy Services (TCS) has said that its AI and GenAI pipeline has doubled in Q4 of FY24 to $900 million. The company has also said that it had won more than 200 engagements of GenAI projects till the end of last fiscal year.
Similarly, Infosys has said that the company was executing more than 200 projects in the GenAI space and six out of every eight employee is getting trained in the GenAI skillsets.
In a note, brokerage firm Nomura has pointed out that the adoption of GenAI technologies is expected to boost demand for cloud services and data standardisation over the next 12-18 months.
Investors will keenly watch the management commentary on GenAI projects and revenue conversion from the Q1 earnings report of Indian IT firms, which will begin from next week.
