At a time when the launch of Anthropic’s new legal AI tool within the Claude Cowork space has sent shockwaves within the global technology sector, market veteran and BSE member, Ramesh Damani, is foreseeing ominous times ahead for Indian IT companies as it looks to play catch-up with the global shift towards artificial intelligence.
In an interaction with NDTV Profit, Damani was clear that the ongoing Agentic shift is not a fad and is here to stay. “It feels different this time,” he said, stating that there is a massive scale and productivity that is taking place in the global tech ecosystem and that the ship may have already sailed for Indian IT.
“I’ve been a big bull and a big beneficiary of the big software boom that has engulfed India for the last 30 years or so. But here’s someone—someone sent me a tweet yesterday which I’ll share with you. They said the top Indian seven Indian software companies are worth about $350 billion. Anthropic is worth $350 billion in itself. Anthropic has 2,000 employees; we have 16 lakh employees. That is a scale of productivity change that is happening in this business,” he said.
Talking about the road ahead for Indian IT in the midst of this AI-led productivity shift, Damani said that while business will continue, the “next 10-20 years will be led by a different set of leaders than what we saw in the post-1992 era.”
Damani added that the large-cap IT companies in India use their cash piles to pay dividends instead of investing in new technology, such as AI learning models or product development. This safe play approach is under threat.
“These guys are using their cash piles to pay out dividends as opposed to investing in new technology like AI learning models or product development. I think maybe the ship has sailed for these companies in terms of risk ability.
“There are a few innovative companies that are doing that, but by and large, the mass of Indian companies are focused on good old services business, which brings goo,d stable profit margins. I think it is under threat,” he said.
Finally, Ramesh Damani urged Indian companies to wake up, pointing out that nothing is permanent in this world.
“I think it also reminds us that nothing is permanent in this world, you know, the business models change and keep evolving,” he concluded.
Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.
