Monday, January 27, 2025

AI driving increased tech spend: Coforge – Technology News

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Artificial intelligence (AI) is reshaping technology spending and driving growth in the IT sector, according to Sudhir Singh, CEO of Coforge.

Singh told FE how AI has positively influenced demand and enabled the company’s growth trajectory. “AI has had a very positive impact on tech spend and, by extension, addressable demand. This has been pivotal in driving our pace of growth,” he said.

While standalone AI projects remain modest in scale, Singh highlighted that most AI initiatives are integrated into larger, data-driven programs. Coforge’s contributions in AI include building scalable data pipelines, assessing clients’ data maturity, vectorising data and creating infrastructure for AI model deployment. These efforts align closely with emerging trends like large language models (LLMs) and “LLM in a box” solutions.

Coforge’s proprietary AI platform — Quasar — plays a central role in these developments. Quasar, an agentic AI tech-neutral platform, comprises 32 submodules that support various use cases, nearly all of which leverage agentic AI technology.

Global capability centres (GCCs) remain a cornerstone of Coforge’s strategy. Singh said that GCCs contribute approximately 10% of the company’s revenue.

“We engage with GCCs through diverse models like build-operate-transfer, joint ventures and augmentative support. For example, we recently helped a client establish an 800-person centre in Hyderabad and ramped up another AI-driven GCC to 400 people in three months for a Fortune 10 client,” he said.

Singh described calendar year 2025 as a “strong growth year,” with Coforge reporting a year-to-date growth of over 27% and a year-on-year growth exceeding 40%. Specific verticals such as BFSI and travel have been key to this success.

For the December quarter, Coforge reported a consolidated net profit growth of 3% sequentially to Rs 206.4 crore, while revenues from operations rose over 8% to Rs 3,318.2 crore. Order intake remained strong, exceeding $500 million for the second consecutive quarter.

“The velocity and median size of deals are increasing, signaling sustained momentum,” Singh said.

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