Wipro Limited, one of India’s foremost IT services and consulting firms, is experiencing a  steady rise in demand for technology solutions powered by artificial intelligence (AI). This  surge comes as global businesses move from trial phases of AI to large-scale  implementations. Wipro’s CEO and Managing Director, Srini Pallia, highlighted that AI is  becoming a pivotal element in digital transformation efforts across various industries. 

During the World Economic Forum’s annual meeting in Davos, Switzerland, Pallia remarked  that with budget constraints beginning to ease, Wipro is keenly exploring a broad range of  AI-driven opportunities. These opportunities span small, mid-sized, and large-scale projects,  reflecting the diverse maturity levels of clients across different regions and sectors. He  pointed out that companies are at varying stages of AI adoption, and Wipro’s strategy is  tailored to meet this diverse demand. 

AI Transforming Deal Structures and Delivery Models 

Pallia acknowledged that the swift adoption of AI has increased pricing pressures within the  IT services sector, primarily due to shorter delivery timelines and smaller team sizes made  possible by automation and intelligent tools. Nevertheless, he remains optimistic that AI will  generate a higher volume of smaller engagements, even as larger transformation projects  continue to surface. This evolution is likely to foster a more dynamic deal pipeline for Indian  IT service providers. 

India’s IT sector, contributing around $283 billion in annual revenue, has faced several tough  quarters recently. Corporate clients have scaled back discretionary technology spending,  concentrating mainly on essential operations and cost-optimisation strategies amid  geopolitical uncertainties and economic fluctuations. However, the sector is now showing  signs of renewed energy, largely driven by the adoption of enterprise AI.

From Experimentation to Tangible Outcomes 

Enterprise investment in AI is decisively shifting from experimentation to a focus on  accountability and measurable returns on investment. Pallia noted that while 2025 was  largely about AI proof-of-concepts and pilot projects, the narrative is changing significantly  in 2026. Corporate boards and CEOs are now demanding clear business outcomes and  tangible ROI from their AI investments. 

In this changing landscape, Wipro positions itself as a strategic partner, offering both AI  consulting and core IT services to assist enterprises in navigating this transition. The  company is helping clients integrate AI into their business processes while ensuring  scalability, governance, and long-term value creation. 

Optimisation Over Expansion of IT Budgets 

While Pallia does not anticipate a significant increase in overall technology budgets, he  highlighted that enterprises are optimising their existing expenditures by embracing cost effective and productivity-enhancing technologies. For example, AI-assisted software  development is expected to lower development costs by nearly 25%, significantly improving  coding efficiency and testing speed. These productivity gains are likely to open up new  project opportunities, ensuring that IT budgets remain robust over the long term. 

Strategic Investment in AI Capabilities 

Reaffirming its commitment to AI-driven growth, Wipro announced a three-year investment  plan of $1 billion in 2023, aimed at bolstering its AI capabilities. This investment will focus  on talent development, platform innovation, and the integration of AI across its service  offerings. 

In summary, the increasing focus on AI-driven accountability and efficiency is positioning  Indian IT services firms, including Wipro, for sustained relevance in the global digital  economy. As enterprises increasingly seek value-driven outcomes, AI is poised to remain a  vital growth catalyst for India’s IT sector in the years to come.