Tata Consultancy Providers Ltd and Infosys Ltd, the 2 largest know-how outsourcing firms in India, are leveraging Adobe’s agentic AI push to promote a full suite of automation instruments, in response to executives and analysts Mint spoke with. At stake is TCS and Infosys’ potential to report larger income earned from core generative AI offers—which has been a rarity for Indian info know-how (IT) companies suppliers.
Valuation hole: income vs. market worth
Adobe, whose key providing in its 43-year historical past has been its inventive software program platforms resembling Photoshop, After Results, InDesign and Premiere Professional, earned $21.51 billion in annual income final fiscal and has guided for $23.55 billion at a 9.5% annual progress in FY25. Whereas not counted among the many Huge Tech firms of the US, Adobe ranks among the many world’s prime 100 most respected corporations, with a market capitalization of $169 billion on the time of writing.
As compared, TCS, which generates larger annual income than Adobe; and Infosys, whose annual income is shut that of Adobe, are valued at $154 billion and $76 billion, respectively. It is because software program makers like Adobe maintain patents and generate larger margins of their companies, which traders worth greater than low-margin, value arbitrage enterprise fashions like that of know-how outsourcing corporations.
AI increase to advertising and commerce
Talking with Mint, Ramachandran Srinivasan, go-to-market associate and senior guide at TCS, mentioned that Adobe’s AI push is a key a part of TCS’ efforts in promoting AI companies to advertising and communications companions.
“We already combine Adobe’s inventive cloud and advertising cloud platforms into our choices within the advertising, media and communications vertical. The AI choices assist us provide visible rendering of merchandise on-location by digital commerce platforms, and we’re seeing rising demand and adoption throughout operations resembling advertising commerce, advertising automation, and extra,” Srinivasan mentioned. “With agentic AI automation, we’re seeing vital curiosity from firms to undertake TCS’ AI choices, through which Adobe’s cloud companies play a key position.”
For Infosys, too, Adobe helps generate income from AI operations in “digital commerce, built-in advertising and mar-tech sectors”, mentioned Balaji Sampath, vice-president at section head of selling at Infosys.
“Our analysis signifies that over 70% of enterprises have deployed AI, together with generative AI, throughout advertising, with over 50% attaining enterprise worth,” Sampath mentioned. Infosys’ AI-amplified advertising suite Aster “brings collectively Adobe’s full suite of choices, our trade options, and a wealthy associate ecosystem to assist enterprises ship partaking model experiences, improve advertising effectivity, and speed up progress”, he mentioned.
Two senior executives at TCS and Infosys added that Adobe’s cloud merchandise, which now embody its full-stack agentic AI platform, drive $500 million to $1 billion in annual income for every firm. Neither confirmed these integrations in response to Mint’s emailed queries.
TCS and Infosys disclose income generated from advertising offers underneath their ‘communication’ verticals. In keeping with the most recent quarterly monetary stories filed by each firms in January, TCS generated $437 million from advertising, media and communication tasks. Infosys, in the meantime, had a bigger footprint on this vertical, incomes $553 million from such offers between October and December.
Thus far within the 2024-25 monetary yr, TCS has generated $1.36 billion from its communication vertical, whereas Infosys earned $1.7 billion.
Generative AI: Lengthy street to progress
Promoting generative AI has been seen as a key issue for India’s tech corporations to pitch themselves on the leading edge of worldwide know-how developments. Nevertheless, a downturn in total sentiment, pushed by a number of geopolitical conflicts and the specter of rising inflation, has harm each TCS and Infosys of their potential to persuade companies to make discretionary spending—which usually drives massive, multi-year know-how transformation offers.
To make sure, Adobe has already been a key enterprise associate for TCS and Infosys. Its newest AI push solely makes the software program maker extra invaluable to the tech outsourcers.
To underline this, final week, Adobe showcased partnerships with Air India and HDFC Financial institution in India as purchasers integrating AI into their operations. TCS and Infosys are taking cues from them to amplify Adobe’s push to promote ‘moral’ AI.
“We’d somewhat drive income slowly and use belief with purchasers to create long-term worth for shareholders and as an organization within the total sense,” Eliot Greenfield, world chief know-how officer, digital media enterprise at Adobe, informed Mint. “Ensuring that enterprises are indemnified from lawsuits whereas utilizing AI in commerce and communications is essential, which is the place our AI fashions, although they could be much less placing than a few of our friends, are successful large.”
Analysts, nevertheless, imagine that the advertising and communications division wouldn’t be a long-term resolution to assist India’s IT corporations set up a gradual income stream from AI offers.
“Profitable generative AI offers for Indian IT companies firms can be necessary to guard their future income because the trade goes by the know-how transition,” mentioned Kumar Rakesh, senior analyst for IT and automotive at brokerage agency BNP Paribas. “Nevertheless, the use instances for large-scale generative AI deployments at present are restricted. As these use instances evolve, we anticipate its demand to be pushed by a number of trade verticals.”
For India’s IT corporations, it’s “nonetheless too early” to speak about rating when it comes to market share solely from GenAI, in response to Rakesh.
“We’re nonetheless about 18 months away from seeing the early indicators of generative AI turning into a driver when it comes to deal wins that the IT corporations will report, and no less than two to 3 fiscals earlier than we see them face a big influence from successful or shedding out on generative AI adoption,” he mentioned. “That mentioned, integration of generative and agentic AI in massive offers being signed as we speak is equally necessary for these corporations because it helps them showcase their capabilities; and for his or her purchasers, it helps them future-proof their tech structure from technological adjustments.”
The author was at Summit 2025 in Las Vegas, USA, on Adobe’s invitation
