Agentic AI Looms Over IT Services: Doom or Opportunity for TCS, Infosys?

Big Tech’s push into Agentic AI, autonomous agents handling complex tasks, casts a shadow over Indian IT giants, whose models rely on billing human hours for maintenance and customization. Global and Indian IT stocks fluctuate as investors debate the existential threat to a sector employing millions.
Dire forecasts predict massive job losses and revenue hits, fueling a “doom scroll” narrative. Yet, the piece argues investor panic may be overblown, with reality between apocalypse and denial.
Legacy systems dominate enterprises, requiring human expertise for migration and upkeep that AI struggles to handle today. Regulatory compliance, data privacy laws, and bespoke client needs further slow AI displacement, buying time for firms to pivot.
TCS and Infosys can leverage their scale to integrate AI, shifting from labor arbitrage to value-added services. Success hinges on upskilling, leveraging AI partnerships, and demonstrating ROI that extends beyond cost-cutting.
The verdict: Disruption is inevitable but gradual, offering adaptation runway amid current unease.