Coforge is betting that artificial intelligence will change the IT services business far beyond writing code. Speaking at the company’s FY26 press meet on Wednesday, chief executive Sudhir Singh said the traditional model of IT services built around labour-heavy delivery was being disrupted and replaced by AI-led business operations.
“In our industry, labour as a default has been disrupted, and that is being replaced by AI-native process redesign and by domain-specialised agents,” Singh said.
“We are moving from a world of IT delivery to one of business orchestration.”
The comments come at a time when India’s IT sector is facing growing questions over how AI tools such as Claude could affect outsourcing demand and software jobs.
Singh said that the bigger opportunity lies not in generating code, but in managing and maintaining AI systems after they are deployed.
“AI generated code is cheap to build, but it is expensive to maintain, it is expensive to secure, and it is expensive to own,” Singh said.
“Someone has to monitor the models, someone has to retrain the agents, and someone has to ensure governance. That is a recurring high margin revenue stream.”
Coforge reported a sharp rise in net profit for the March quarter, with earnings climbing to Rs 612 crore, more than doubling year-on-year, aided by strong deal wins and margin expansion. However, the reported profit was also supported by a one-time reversal of deferred tax liability linked to the Cigniti merger, which lifted earnings in the quarter.
Revenue for Q4 FY26 stood at Rs 4,450.4 crore, rising 30% year-on-year and 5.2% quarter-on-quarter, reflecting steady business momentum. Growth was supported by robust deal activity, with fresh order intake of $648 million during the quarter, up 9.3% sequentially, with five large deals signed.
Singh further said he sees future demand coming from areas such as AI-ready data pipelines, AI-led engineering transformation, agent lifecycle management and outcome-based delivery models.
Coforge said it has already completed more than 150 AI engagements across banking, insurance, travel and healthcare.
“Firms who are engineering outcomes for customers are compounding, while firms who continue to bill hours are getting left behind,” he said.
The company said some of its AI-led delivery units, which it calls “ModSquads”, combine AI agents with senior specialists and are delivering “40 to 50% faster time to market for clients”.
When asked whether advances by companies such as OpenAI and Anthropic posed a threat to IT service providers, Singh said the market opportunity was too large for a handful of firms to dominate.
“The demand is immense going forward. The demand is evolving. These are new demand areas that are coming up,” he said.
