A major transformation is taking shape in the global technology services market as AI companies like OpenAI and Anthropic move beyond AI tools and step directly into enterprise services.
The shift is expected to create both opportunities and challenges for Indian IT giants such as TCS and Infosys, as AI-native firms begin offering end-to-end AI deployment and operational services to enterprise customers.
Anthropic recently launched a $1.5 billion joint venture with Blackstone, Hellman & Friedman, and Goldman Sachs to deploy its Claude AI model directly within enterprises. Soon after, OpenAI introduced The Development Company, a $4 billion venture backed by TPG, Brookfield, Bain, and Advent, targeting a similar enterprise market at a larger scale.
Instead of only providing AI platforms or models, these companies are now directly building, deploying, and managing AI systems inside organizations. Their engineers often work closely with business teams to integrate AI into daily operations, positioning these firms as full-stack AI service providers.
Industry experts believe this changes the traditional IT services model that has long relied on large teams, extended project timelines, and manpower-led delivery.
“Large enterprises no longer want generic software dropped into their environment – they want solutions built around their specific data, their regulatory constraints, and their domain logic,” said Venkat Viswanathan, founder & chairperson of LatentView Analytics.
Mahendra Dhillon, chief digital, AI & growth advisor at MOAR Advisory, said the AI-native approach directly challenges the engagement model that helped build India’s IT industry.
“The second model costs the client less. It costs the vendor fewer people. And it leaves almost no room for the 180-person team that used to do this work,” Dhillon noted.
Experts say AI-driven delivery models are compressing implementation timelines while shifting the industry toward outcome-led execution instead of manpower-based billing.
“This significantly compresses implementation timelines and begins to shift the value proposition from manpower-led delivery to outcome-led execution,” said Raghu Pareddy, CEO & founder of Wissen Technology.
At the same time, analysts believe traditional IT firms still hold strengths in governance, legacy system integration, regulatory expertise, and long-standing client relationships.
The industry is also witnessing “co-opetition,” where companies partner with AI firms while simultaneously competing against them for enterprise budgets.
Experts suggest that hiring trends, AI-led revenue growth, deal ownership, and employee productivity will become key indicators of how quickly the IT services operating model evolves in the AI era.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
