Mumbai, Feb 25 About eight out of 10 developers in India have reported significant productivity gains by using generative AI, as the new technology is transforming IT-enabled services (ITeS) industry in the country, according to a new report.
As companies increasingly integrate AI into their workflows, the report said that GenAI is just the beginning and the next major evolution will be Agentic AI -- where AI systems move beyond assistance to autonomously execute tasks, predict failures, and optimise operations in real time.
According to the report by the Boston Consulting Group (BCG), this level of AI-driven automation can lead to faster software releases, lower operational costs, and near-zero downtime.
However, achieving this future depends on building a strong foundation in GenAI today.
This technology is no longer just an experiment -- it is revolutionising software development, making coding, testing, and deployment faster and more efficient, the report added.
For decades, India has been the backbone of global IT services, excelling in software development and digital transformation.
However, as AI reshapes the industry, companies must move beyond traditional methods and fully integrate GenAI into their workflows.
GenAI’s momentum is at the bottom of the hockey stick effect - what we do next will define our trajectory, said Rajiv Gupta, Managing Director and Senior Partner, BCG.
He added that we are at a critical inflection point where Indian ITeS must lead with conviction, scale GenAI with urgency, and earn the right to shape the future of AI-powered services.
“The choice is clear: we either embrace this transformation and cement our global leadership, or hesitate, lose ground, and fade into irrelevance," Gupta stated.
Companies that invest in AI training see a significant jump in adoption rates -- from just 16 per cent to 48 per cent after five or more targeted training sessions. With 92 per cent of enterprise clients willing to pay a premium for AI-driven services, IT firms must showcase tangible returns on investment to attract more business.
To ensure successful adoption, companies must also address concerns about job security and workflow disruptions, the report said.
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