OpenAI, Anthropic move into services: What this means for Indian IT

As AI companies move closer to enterprise clients, the shift could disrupt the existing IT models and force firms like TCS and Infosys to adapt faster

  A major shift is unfolding in the technology services industry, driven by artificial intelligence (AI). Anthropic and OpenAI are moving closer to enterprise customers by offering end-to-end AI services. This means they are no longer just enabling innovation but actively delivering business outcomes.

 

Industry analysts say the shift brings both opportunity and disruption for established Indian IT service providers.

 

What has been announced and why it matters

 

Anthropic launched a $1.5 billion joint venture with Blackstone, Hellman & Friedman, and Goldman Sachs to deploy its Claude AI model directly inside corporations. Soon after, OpenAI announced The Development Company, a $4 billion venture backed by TPG, Brookfield, Bain, and Advent, targeting the same market on an even larger scale.

   

The core idea is simple. Instead of just selling AI tools for companies to use on their own, these firms will now step in and directly build and run AI systems inside organisations, often placing their own engineers on-site to work closely with business teams and integrate the technology into day-to-day operations. By moving into services, both firms are positioning themselves as full-stack players, controlling everything from the model to deployment and ongoing support.

 

This move matters because it changes how AI companies earn money. Selling standalone AI tools can bring uneven and short-term revenue, whereas long-term contracts with businesses are more stable and deeply built into everyday operations.

 

Venkat Viswanathan, founder & chairperson of LatentView Analytics, a Chennai-based analytics firm, told Business Standard, “Large enterprises no longer want generic software dropped into their environment - they want solutions built around their specific data, their regulatory constraints, and their domain logic.”

 

Mahendra Dhillon, chief digital, AI & growth advisor at MOAR Advisory, a Bengaluru-based consulting firm, said this is not an abstract competitive threat but one that directly challenges the engagement model that built the Indian IT industry.

 

The new model: From manpower to machine-led execution

 

Traditional IT services relied heavily on large teams and long project cycles. The new AI-native model flips that equation.

 

Dhillon explains this stark contrast: “The second model costs the client less. It costs the vendor fewer people. And it leaves almost no room for the 180-person team that used to do this work.”

 

Instead of hundreds of engineers working over years, a small team can now deploy AI systems that automate a majority of tasks. This model is faster, cheaper, and outcome-driven rather than effort-driven.

 

Raghu Pareddy, CEO & founder of Bengaluru-based IT consulting and services firm Wissen Technology, notes, “This significantly compresses implementation timelines and begins to shift the value proposition from manpower-led delivery to outcome-led execution.”

 

However, this transition is not absolute. Enterprises still require governance, integration, and domain expertise, areas where traditional IT firms retain an edge.

 

What this means for Indian IT

 

First, the labour-arbitrage model, which relies on large offshore teams, is under pressure. As AI automates coding, testing, and support, the need for large entry-level teams reduces.

 

Dhillon adds that the traditional staffing pyramid is under strain, with automation hitting entry-level roles while AI-native firms move up the value chain into high-margin consulting and transformation work.

 

Second, pricing models are evolving. As Viswanathan explains, “The shift away from time and materials toward fixed-fee and subscription pricing is already underway.”

 

Third, the competitive landscape is becoming more complex. These AI firms are both partners and competitors. Infosys, for instance, has partnered with both Anthropic and OpenAI, even as it competes with them for enterprise budgets.

 

Pareddy highlights this dual dynamic. “We’ll see more co-opetition. Companies are already partnering with AI firms to accelerate adoption, even as they compete for enterprise budgets,” he said.

 

Yet, Indian IT firms are not without defences. Long-standing client relationships, regulatory expertise, and experience in managing complex legacy systems remain strong advantages.

 

Business Standard tried reaching out to TCS and Infosys for comment on this development. At the time of publication, no response had been received.

 

What should investors watch next

 

Pareddy advises, “Watch deal ownership—are enterprises increasingly engaging directly with AI-native service providers instead of traditional IT vendors?”

 

Talent trends may offer the clearest signal of all. “If hiring shifts from large-scale engineering teams to smaller, highly specialised AI teams, that’s a clear indicator that the operating model itself is being redefined,” Pareddy notes.

 

Dhillon adds that a few simple metrics can help track real progress. These include:

• How much of a company’s revenue comes from AI
• Whether it is winning new deals, or renewing old ones
• How much revenue each employee generates

 

Experts also note that margins should be considered. AI-led delivery can reduce what companies charge clients because it requires less manual work and allows projects to be completed faster. However, even though pricing may come down, companies can still improve efficiency and deliver more with smaller teams, which changes how profits are earned.