Generative AI is helping India's top IT firm Tata Consultancy Services accelerate development in the industry's fastest-growing niche of engineering research and design, a senior executive told Reuters.
TCS, which has clients such as Rolls Royce, Jaguar Land Rover and Siemens, has seen product development cycles for engineering-related clients quicken by as much as 20% and expects further improvement, Sreenivasa Chakravarti, vice president of internet of things and digital engineering, said on Wednesday.
Generative AI has taken centre stage in the space and clients are replanning budgets and product features, Chakravarti said. He did not name any clients while referring to the productivity improvements.
"It (generative AI) is used for code generation, testing and quality (assurance) which are low-hanging fruits right now."
Engineering, research and design services, which include technology support to hardware-oriented industries such as self-driving and sustainability solutions for oil and gas companies, contribute a sixth of the revenue in India's storied $254 billion tech industry.
The niche was estimated to grow 7.5% in the fiscal year 2024, the fastest among all sectors, according to data from the National Association of Software and Service Companies.
The IT industry body expects the engineering, research and design space to nearly quadruple between 2023 and 2030 to as much as $170 billion.
Apart from pure-play software services firms such as TCS, Infosys and Wipro, the space also has focussed players like Tata Elxsi, Cyient and L&T Technology Services.
India's core software services have been facing macroeconomic headwinds and technology sector growth is estimated to have slowed as clients hold back spending.
Meanwhile, the engineering, research and design niche has been heating up as large IT firms buy out peers.
Cognizant snapped up digital engineering firm Bulcan for $1.3 billion in June and Infosys acquired German player in-tech for $480 million this year.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Featured Video Of The Day
"From Chandrayaan To Gaganyaan, Not Nervous": ISRO Chairman To NDTV
"Lack Of...": Top IT Body Backs Infosys After Rs 32,000 Crore GST Notice ''The Worst Part Is...'': Techie Highlights Stagnant Salaries At TCS, Sparks Debate "Relocate To Vizag": Andhra Minister To IT Firms Amid Karnataka Quota Row Video: Bengaluru Woman Harassed By Auto Driver For Cancelling Ride Day After Rape-Murder, Sandip Ghosh Ordered Renovation At Hospital: Report Amid #MeToo Wave, Actor's "Groomed Me As Sex Slave" Charge Against Director Kerala Court Gives Pre-Arrest Bail To Actor-MLA Mukesh In Sex Assault Case BJP J&K Chief Ravinder Raina Files Nomination From Nowshera Assembly Seat Power Of Our Business Is In integrated Model And Adjacencies: Gautam Adani Track Latest News Live on NDTV.com and get news updates from India and around the world.