21 March 2025, Hyderabad: The rapid rise of artificial intelligence (AI) and an increasingly competitive business environment are driving significant leadership changes and structural realignments in India’s technology services industry. At least eight IT firms, including LTIMindtree, Cyient, and Happiest Minds Technologies, have appointed new chief executives since January 2025, while companies like Wipro have revamped their organizational structures to align with AI-led transformation.
Leadership Overhaul and AI-Focused Roles
Industry analysts highlight that AI is now taking center stage, prompting companies to pivot towards product and platform development alongside delivery efficiencies. In response, traditional executive roles such as chief operating officer (COO) are evolving into AI-focused positions.
“The IT services industry is witnessing an unprecedented level of leadership change, with six to eight CEO transitions in just two quarters. This is a clear reaction to the ongoing sectoral shifts,” said Somnath Chatterjee, founder of Prismforce, a software provider for the technology services sector.
Among the notable appointments, LTIMindtree, India’s sixth-largest IT firm, named Vengopal Lambu as CEO-designate in January, while Happiest Minds Technologies introduced a CEO position for the first time in eight years. Meanwhile, mid-sized IT player Cyient recruited Sukamal Banerjee from private equity-backed Xoriant, which subsequently hired Rohit Kedia from LTIMindtree.
Several of these companies are active in the fast-growing engineering, research, and development (ER&D) sector. Other ER&D firms, including GlobalLogic, Axiscades, Virtusa Consulting, and Akkodis (the ER&D arm of talent recruitment giant Adecco Group), have also brought in new leadership.
Organizational Restructuring Amid Market Challenges
Besides leadership shifts, companies are redesigning their structures to differentiate themselves in a challenging market. Wipro, India’s fourth-largest IT services company, recently realigned its business units into four segments: technology services, business process services, consulting services, and engineering.
Similarly, LTIMindtree reassigned its COO, Nachiket Deshpande, to a newly created global AI services role that encompasses strategic deals and partnerships. The company also appointed a global chief delivery officer to oversee all service lines, delivery units, and talent supply chains.
“The market and customer demand are evolving rapidly. AI is leading the transformation, and companies are restructuring to develop the right products, create efficient go-to-market strategies, and stay agile,” said Gaurav Burman, senior client partner at executive search firm Korn Ferry.
Shifting Business Models and Investor Pressures
The IT services sector, which generates $280 billion in annual revenue, is undergoing a significant shift as businesses move towards AI-driven product and engineering solutions. This transition is being accelerated by growing competition, slowing revenue growth, and rising investor expectations—particularly in private equity-backed firms.
“Growth has been sluggish for 18-24 months, and recent US policy changes have added uncertainty, delaying the expected rebound,” said Chatterjee. He compared the current situation to the 2008 global financial crisis, noting that while offshoring helped the industry recover back then, today’s firms must fundamentally reimagine their business models.
As companies adjust to AI-driven strategies, executive roles are also evolving. Traditional chief information officer (CIO) and chief technology officer (CTO) roles are being redefined as chief technology and product officer (CTPO) positions, emphasizing the growing intersection of technology, product development, and customer insights.
With AI reshaping the industry landscape, India’s IT services firms are racing to stay ahead by restructuring leadership teams and redefining business strategies to maintain a competitive edge.
Source: MSN
