Nasscom Prioritizes AI Integration and Revenue Growth

Nasscom appointed Srikanth Velamakanni, co-founder and Group CEO of Fractal, as Chairperson and set an agenda focused on accelerating AI-led services transformation, productization, and restoring revenue growth across the Indian IT sector. The industry body is explicitly promoting Agentic AI, responsible AI, deep-tech capability building, and talent development for Human+AI roles while pushing for more intellectual property creation and specialized AI products from Indian firms. Market context cited includes projections of the Indian AI market reaching $131 billion by 2032 and global AI spending exceeding $300 billion in 2026.

Practitioners should note the practical priorities Nasscom and the new leadership are emphasizing:

• •AI-first services transformation, integrating models into delivery pipelines and client systems rather than bolt-on tooling
• •Product and `Agentic AI` development, moving firms from project-based services to repeatable IP and agentic systems
• •Responsible AI governance and tooling, aligning deployments with risk controls and client compliance needs
• •Deep-tech capability building and talent pathways for Human+AI roles across engineering, MLOps, and model governance

These priorities imply investment in model engineering, MLOps, data infrastructure, secure model deployment, and cross-functional integration work. Fractal's public positioning highlights continued R&D investment (reported at 5% of revenue), a signal that the industry push will favor engineering-heavy stacks and productized analytics platforms over pure labor arbitrage.

The chair appointment is more than ceremonial; it reframes Nasscom as an industry advocate for product-focused AI capability rather than only a services-export lobby. India already ranks highly on Stanford's Global AI Vibrancy measure, and leaders argue AI will both compress execution costs and create a large modernization market opportunity through legacy system upgrades. That tension matters: if vendors only chase short-term productivity gains, revenue could shrink even as margins rise. The policy and ecosystem response Nasscom coordinates-standards, skilling programs, public-private partnerships, and incentives for IP ownership-will shape whether Indian companies capture higher-value product revenue or remain margin-focused service providers.

This agenda changes procurement and delivery expectations. Enterprise customers will demand integration-grade solutions, documented governance, and product roadmaps rather than ad-hoc model pilots. Expect increased demand for: model fine-tuning for domain tasks, MLOps frameworks for multi-agent orchestration, secure feature pipelines, and developer tooling for agentic workflows. Vendors should prioritize repeatable IP, telemetry-driven operations, and compliance-ready model stacks to be competitive.

Track Nasscom's follow-on programs-skilling initiatives, certification frameworks, public-private R&D funding, and pilot industry standards-and which firms convert association guidance into product-led GTM. The economic outcome hinges on execution: successful integration will expand addressable markets; failure will leave services revenues exposed to automation compression.