ChatGPT: Boon or Bane for Indian IT?


The widespread implementation of generative AI like ChatGPT in the industry has disrupted the market and raised questions about the future of conventional IT services.

According to a JP Morgan report, generative AI has the potential to ‘deflate legacy services’ and could hurt Indian IT firms in terms of market share and pricing.

The report states that consulting firms such as Deloitte and Accenture could potentially gain market share over Indian IT companies such as Infosys and Wipro. However, experts that Analytics India Magazine spoke to hold a contrasting perspective.

Too early to tell

“I take the liberty to disagree with it. Whatever is unveiled is not sufficient to extrapolate the overall outcome,” Vishal Prakash Shah, co-founder and CEO Synersoft Technologies, said.

“ChatGPT has demonstrated significant language-oriented content development use cases. It has also impressed everyone with its capability to optimise software codes. However, it is not enough to judge its impact on Indian IT companies,” he further added.

Currently, the technology is still at a very nascent stage. Companies cannot rely on ChatGPT for their high-stakes projects unless it demonstrates high reliability, Shah continued, “Also, we are not sure what the terms of commercial use of ChatGPT are. For a country like India, it may be more cost-effective to use humans compared to a commercial version of ChatGPT; who knows?”

Sanjeev Azad, Vice President – Technology, GlobalLogic also echoed similar views. “I don’t think it would have any negative impact,” he said, “History shows that like any other disruptive technology, it has a positive and negative impact, so it is imperative to note how Indian IT companies adopt these technologies to beat the rapid tech evolution.”

However, Hardik Panchal, General Manager – Networking Services and Operations at Rahi, believes that major IT giants in India will be able to train their staff for faster adoption of the technology; but the smaller companies may struggle to catch up, thereby decreasing market competitiveness.

“Overall, the use of language models like ChatGPT has the potential to transform many aspects of Indian IT companies’ operations, making them more efficient, effective, and customer focused,” Anurag Sahay, CTO and Managing Director – AI and Data Science, Nagarro, said.

Although the impact of ChatGPT on the Indian IT sector is still uncertain, there are several potential benefits that IT firms can gain from this technology.

ChatGPT for training

ChatGPT has the ability to solve one of the most prevailing problems for the Indian IT firms—freshers joining the sector, who often do not come with the required skill sets, can be trained better with this technology.

“Tools like ChatGPT can serve as a great respite to this problem. Indian IT companies can look at ChatGPT as a quality assurance tool in its nascent stage. It does it really well,” Shah said.

ChatGPT can also play an important role in employee training and development. “Indian IT firms could use the technology to develop virtual training programmes that simulate real-life scenarios and provide employees with personalised feedback and guidance,” Anurag Sahay, CTO and Managing Director – AI and Data Science, Nagarro, said.

IT giants Tata Consultancy Services (TCS) and Infosys, along with global tech consultants such as Accenture, are already offering training and skilling modules for beginners on ChatGPT and other similar AI technologies.

However, on the flipside, while the Indian IT firms can greatly benefit from ChatGPT, widespread adoption of the same could lead to job displacement in the industry.

“Indian IT companies that use ChatGPT to automate tasks may not require as many human employees as they did before,” Azad said.

Better customer support

ChatGPT also has the potential to revolutionise the way companies interact with their customers and employees. “Indian IT companies, which are known for their expertise in software development and digital solutions, could reap benefits from the use of language models like ChatGPT,” Sahay said.

ChatGPT can provide Indian IT firms with the ability to offer a more personalised and responsive customer service experience. Chatbots powered by ChatGPT can understand natural language and respond appropriately, which can result in faster resolution of customer queries and complaints. 

“India is a big market for BPO (Business Process Automation) and Customer Contact Centers, so leveraging ChatGPT could be a game changer for many IT firms that are into such businesses,” Azad said.


Further, ChatGPT could also address issues related to automation. Legacy tech modernisation is a classic example where IT firms often struggle to find skilled workers and motivate them to work on outdated technologies. 

Automating legacy technology upgrades can be a revolutionary solution to this problem. “While automation has been steadily increasing across Indian IT enterprises, the integration of ChatGPT’s API will only accelerate it,” Panchal said.

ChatGPT could address time-consuming tasks, such as data entry or document generation, and more complex issues later as the technology matures.

Infosys chief Salil Parekh has also confirmed that the IT giant is currently using ChatGPT with client situations and that is starting to further increase productivity in automation.

Besides, Indian IT firms can also leverage ChatGPT to detect and prevent fraud by analysing large swaths of data to identify patterns and anomalies. “It can also help improve their cybersecurity posture with its ability to analyse log data and detect security threats, enabling IT teams to identify and respond to potential breaches more quickly,” Panchal added.

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