Generative AI is significantly enhancing development speeds for Tata Consultancy Services (TCS), India’s leading IT firm, in the rapidly expanding field of engineering research and design, according to a senior executive’s remarks to Reuters.
Sreenivasa Chakravarti, TCS’s Vice President of Internet of Things and Digital Engineering, revealed on Wednesday that the integration of generative AI has accelerated product development cycles for engineering clients by up to 20%. He anticipates even greater efficiency improvements moving forward.
Chakravarti highlighted that generative AI is now central to various processes, including code generation, testing, and quality assurance—areas that currently offer significant productivity gains. However, he did not specify which clients have benefited from these advancements.
Engineering, research, and design services contribute approximately 16% of the revenue in India’s $254 billion tech sector. This niche, which supports industries like autonomous driving and sustainable solutions for the oil and gas sector, is projected to grow by 7.5% in the fiscal year 2024, making it the fastest-growing segment, according to the National Association of Software and Service Companies.
The sector is expected to expand nearly fourfold between 2023 and 2030, potentially reaching $170 billion. Alongside major software services firms like TCS, Infosys, and Wipro, specialized players such as Tata Elxsi, Cyient, and L&T Technology Services are also prominent in this space.
Despite facing economic challenges and slowing growth in core software services, the engineering and design sector is thriving. Major IT companies are actively acquiring firms to strengthen their positions. For instance, Cognizant acquired the digital engineering company Bulcan for $1.3 billion in June, and Infosys purchased the German firm in-tech for $480 million earlier this year.
You Might Be Interested In
