HCLTech is investing $150 million [2] in Bengaluru-based Sarvam AI to accelerate its presence in the artificial intelligence sector.
This move signals a strategic push by Indian IT services to maintain competitiveness as global technology giants pivot toward AI. While some analysts suggest the sector may have missed early opportunities, HCLTech is betting that the window for growth remains open.
Sarvam AI recently raised $234 million [1] in a funding round led by HCLTech. This injection of capital has propelled the startup to a valuation of $1.5 billion [1], officially granting it unicorn status in the Indian tech ecosystem.
C Vijayakumar, Managing Director and CEO of HCLTech, said that the Indian IT sector could have invested earlier in AI, but it is "never too late to capture the massive shift" [0]. He said that the company is prioritizing heavy investment to navigate the rapid transformation of the technology market.
The investment comes amid a complex landscape for Indian IT firms. Some industry reports suggest that AI is quietly eroding pricing power and growth for services companies [4]. There is an expectation that the impact of AI will intensify for these firms during fiscal year 2026 [4].
Despite these headwinds, Vijayakumar said that the sector remains a force to reckon with. The partnership with Sarvam AI is intended to leverage the startup's capabilities to create new value for clients as the industry transitions away from traditional IT models [0].
“It is never too late to capture the massive shift.”
HCLTech's significant investment in Sarvam AI reflects a broader urgency within the Indian IT services industry to pivot from legacy labor-arbitrage models to AI-driven value creation. By backing a domestic unicorn, HCLTech is attempting to mitigate the risk of eroding pricing power and growth that threatens the sector as AI automates traditional coding and maintenance tasks.
