Why Wipro is betting big on AI

Deals just keep raining on Dalal Street.

What’s brewing: Wipro shares gained after the IT giant expanded its partnership with US-based software company ServiceNow to roll out agentic AI across key business functions like IT, HR, procurement and cybersecurity.

As part of the deal, Wipro will integrate its Wipro Intelligence platform with ServiceNow’s AI platform to offer these solutions to clients.

But this partnership is about much more than just one deal.

Investors are increasingly worried that advances in artificial intelligence could reduce the need for some of the outsourcing and technology services work that has powered India's IT industry for decades.

Wipro, for its part, is moving aggressively.

The company recently signed a more than $1 billion, eight-year transformation deal with Olam Group and is also acquiring Olam's IT arm, Mindsprint, to deepen its capabilities in AI-driven platforms.

The AI dilemma: it is creating both excitement and anxiety across India's IT sector. For years, Indian IT firms have made money by helping global companies manage applications, software systems and business operations.

Now, AI tools are becoming powerful enough to automate parts of that work. And some analysts believe the risks are real.

Brokerage Jefferies recently warned that ‘there is more pain ahead for Indian IT,’ arguing that rapid advances in AI could start eating into application-services revenue, a business segment that contributes a large chunk of revenue for many IT companies.

Motilal Oswal estimates that AI-led disruption could wipe out 9-12% of industry revenues over the next four years.