Tata Consultancy Services (TCS) and Infosys, two of India’s largest technology outsourcing companies, are partnering with Adobe to leverage its agentic AI push to sell a full suite of automation tools. This partnership is aimed at reporting higher revenue from core generative AI deals, which has been a rarity for Indian IT service providers.
Adobe, a leader in creative software platforms like Photoshop, After Effects, and Premiere Pro, earns $21.51 billion in annual revenue and has guided for a 9.5% annual growth in FY25. In contrast, TCS and Infosys, with their lower margins and focus on cost arbitrage, have a market capitalization of $154 billion and $76 billion, respectively.
TCS and Infosys are positioning Adobe’s AI push as a key part of their efforts to sell AI services to marketing and communications partners. The companies are integrating Adobe’s creative and marketing cloud platforms into their offerings, allowing them to offer visual rendering of products on-location through digital commerce platforms and marketing automation.
Adobe’s cloud services are playing a key role in TCS’s and Infosys’s AI offerings, driving revenue in the $500 million to $1 billion range annually. However, some analysts believe that the marketing and communications division will not be a long-term solution for India’s IT firms to establish a steady revenue stream from AI deals.
Winning generative AI deals is crucial for India’s IT firms to protect their future revenue as the industry goes through a technology transition. However, the use cases for large-scale generative AI deployments are currently limited, and the demand is driven by multiple industry verticals. It’s too early to predict the impact of generative AI on IT firms, but their integration of generative and agentic AI in large deals is crucial to showcase their capabilities and future-proof their tech architecture.