Amid Nvidia's sizzling rally on AI boom, what lies ahead for domestic firms TCS, Infosys and others?

Amid Nvidia's spectacular ascent, wherein its shares hit a new milestone and its m-cap saw a sharp increase of around Rs 22.9 lakh crore in a single day last week on February 22, 2024, Accenture remains firmly bullish on GenAI, or generative artificial intelligence.
 
Generative artificial intelligence is a kind of artificial intelligence that can produce various types of content, including text, imagery, audio, and synthetic data. It uses machine learning algorithms to create content.
 
The tech giant expects the IT sector's revenue to see a low double-digit growth of 10 per cent on the back of GenAI. The bellwether for the IT sector, Accenture, stated that the avenue is being capitalised by other sectors too, including BFSI, consumer goods, retail, and software and platforms.
 
Noting its exorbitant deals in the segment, Accenture highlighted that in Q1, which ended in November last year, the company signed deals worth $450 million in generative AI. Additionally, the company, in light of AI, has doubled its headcount, it said.  

Indian IT companies and their GenAI foray

TCS: The Indian IT bellwether will develop a GenAI application incorporating AI infrastructure. Furthermore, the company, in association with Nvidia, will train its over six lakh workforce in the domain.
 
Tata Communications: The company, in association with Nvidia, will establish an AI cloud. With this, data transfer will be facilitated at a much faster pace.
 
Infosys, the leading IT services provider that is headquartered in Bengaluru, launched Topaz, its GenAI platform, in May of last year.
 
LTIMindtree: The company launched the GenAI-powered autonomous sourcing platform, Navisource.AI. The platform aims at increasing productivity by 20 per cent and reducing procurement costs by 10–15 per cent.