Topics In Demand
Notification
New

No notification found.

Indian vs Global tech - Strategies for building AI/GenAI capabilities
Indian vs Global tech - Strategies for building AI/GenAI capabilities

April 4, 2025

31

0

Analysis of select Indian and Global tech companies M&As and partnerships during the period Jan 2024 to Dec 2024 

In this blog, we analyse how leading global tech companies (Accenture, Capgemini, Globant, CGI, IBM, and EPAM) and top Indian tech firms (TCS, HCLTech, Infosys, Wipro, Tech Mahindra, and LTIMindtree) are strengthening their AI capabilities.

Key takeaways: 

 - In CY24, global tech companies prioritized AI expansion through acquisitions, while Indian tech companies focused on a partnership approach.  

  • The acquisition-driven approach significantly boosted revenue growth, with inorganic growth nearly twice as fast as organic growth.  

  • Key drivers for the acquisitions included enhancing data analytics, optimizing supply chain operations, improving customer experience, and modernizing cloud applications. 

 - Top Indian tech companies focused on AI driven partnerships and alliances with global hyperscalers and startups.  

  • This approach aligns with Nasscom’s Strategic Review report, that highlights partnerships accounted for 55% of AI activity in CY24.  

  • Despite lower number of acquisitions, Indian tech companies were able to maintain growth and provide differentiated AI/GenAI led solutions to the clients globally. 

Let’s delve deeper and analyse these strategies. 

 

Global tech companies: Acquisition-driven growth 

In CY24, select global tech companies completed ~55 mergers and acquisitions, of which 20 deals specifically aimed at enhancing their AI capabilities. 

Analysis of the selected global tech firms revealed that inorganic revenue growth was ~2X higher than organic growth, underscoring the significant impact of acquisitions on their financial performance and highlighting their inorganic growth strategy. 

Organic vs Inorganic revenue growth – Global Tech 

 

 

Accenture dominates M&As in the AI/GenAI space followed by EPAM 

 

 

 

Top reasons for acquisitions by global tech companies 

 - Strengthening data analytics capabilities – Strengthening and enhancing data analytics and data management capabilities 

  • Globant – Exusia for expanding data & AI offering 

  • EPAM - First Derivative to enhance AI and data-driven solutions for financial services 

  • Accenture – Parsionate to boost Accenture’s ability to provide highly tailored and effective data-driven solutions 

Enhancing supply chain and operations - Automate operations, improve efficiency, and drive better business performance through AI-powered decision-making. 

  • Accenture - OnProcess Technology enhances its supply chain delivery capabilities 

  • IBM - Accelalpha strengthens AI in supply chain, logistics, and finance. 

Expanding CX capabilities – Bolstering customer experience and CRM related capabilities 

  • Accenture – Unlimited to strengthen its CRM and customer experience capabilities 

  • Accenture – Gemseek to expand its customer analytics services 

Cloud and Application modernisation – Strengthening cloud, hybrid infrastructure, and AI-driven modernization 

  • IBM - HashiCorp strengthening expertise in automating and securing cloud infrastructure 

  • Accenture - OpenStream Holdings to support application modernization and enable cloud, data, AI, and IoT adoption. 

 

Indian Tech Companies: Taking the partnership route 

In contrast, select top Indian technology companies pursued fewer acquisitions but prioritized partnerships, with approximately 46 AI-focused partnerships, primarily with global hyperscalers and AI startups. By forming alliances with global hyperscalers and India AI startups, they integrated AI solutions into their services without significant capital investments in acquisitions. 

 

 

 

Company specific strategies for partnerships 

HCLTech  

  • Enhancing AI-driven cybersecurity solutions, integrate AI into software development, and expand AI upskilling programs.  

  • Developing industry-specific AI solutions, launching AI-powered platforms, and accelerating enterprise AI transformation.  

  • Support AI adoption in telecommunications, cloud computing, and business applications, while establishing Centers of Excellence to drive AI innovation. 

Wipro  

  • Integrating advanced AI models into its cloud platforms, enabling businesses to scale AI implementation and improve productivity.  

  • AI-driven cybersecurity risk management, business automation solutions, and virtual assistants. 

Tech Mahindra  

  • Focus on delivering GenAI-powered enterprise solutions and transforming telecom networks.  

  • Establishing AI Center of Excellence, modernizing workplace experiences, and enhancing business transformation and customer experience solutions across global markets.  

  • Accelerate AI adoption and leverage advanced AI platforms for innovation. 

TCS

  • Enhance cybersecurity solutions, and support cloud transformation 

  • Establishing a dedicated AI business unit, developing AI-powered cybersecurity solutions, and providing cloud modernization programs leveraging GenAI. 

Infosys

  • Accelerate AI-driven enterprise solutions, cloud adoption, and drive AI innovation through open-source platforms.  

  • Initiatives include the development of Small Language Models, creation of AI Centers of Excellence, and GenAI-powered industry solutions to transform customer experiences.  

  • Improving enterprise efficiency, growth, and cloud modernization by integrating cutting-edge AI technologies. 

LTIMindtree 

  • Boosting AI-driven software development, cybersecurity with zero-trust network access, and invest in AI solutions for customer engagement.  

  • Driving enterprise AI adoption and establishing AI Centers of Excellence to drive innovation through advanced AI and data platforms. 

Key focus areas for AI/GenAI partnerships by Indian tech companies include: 

  1. Automation & Transformation – AI-driven business process automation and enterprise transformation. 

  1. Cloud & Cybersecurity Solutions – Cloud modernization, AI/GenAI-powered cybersecurity, and secure digital infrastructure. 

  1. AI/GenAI Solution & Adoption – Partnerships focused on AI/GenAI-driven solutions, tools, and adoption strategies for businesses. 

~54% of the top Indian tech companies’ partnerships for AI/GenAI focused on enhancing AI/GenAI adoption and building solutions  

 

 

Examples of AI/GenAI partnerships by Indian tech 

 

 

What this means for the industry?

As highlighted in the Nasscom Strategic Review report 2025, partnerships accounted for 55% of AI activity in CY24, with a 3.3x increase in AI-led collaborations among large and mid-size tech firms. The AI strategy in CY24 focused towards long-term, strategic alliances, strengthening cloud, data, and software collaborations, joint AI product development, R&D, and go-to-market initiatives. 

Also, as per our above analysis, Indian tech companies are strengthening AI capabilities through strategic partnerships, collaborating primarily with global hyperscalers and AI startups to integrate AI solutions without significant capital investments. This approach enables cost-effective scalability across automation, cloud, cybersecurity, and industry-specific applications. This trend is expected to continue, further solidifying India’s partnership-driven approach to AI growth. 

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Prajwal Pandey
Research Analyst

© Copyright nasscom. All Rights Reserved.