Wipro CEO, Srini Pallia, speaking from the World Economic Forum in Davos, Switzerland, on January 20, 2026, articulated a promising outlook for India's IT services sector, fueled by the escalating demand for Artificial Intelligence. Pallia noted that AI is now a key component of technology deals that Indian software service providers are vying for, marking a transition from AI testing to full-scale project deployments.

Pallia observed a shift in client priorities, stating that 2025 was largely about deploying AI for proof of concepts and productivity gains. However, in 2026, boards and CEOs are increasingly focused on the return on investment (ROI) from these AI initiatives. This demand for tangible results is driving the need for comprehensive AI strategies and implementation, creating opportunities for companies like Wipro.

While Pallia doesn't anticipate significant increases in tech budgets, he noted that clients are optimizing their spending by adopting cost-saving technologies. AI-assisted software development, for instance, can reduce costs by approximately 25% through enhanced coding and testing productivity. This cost efficiency, in turn, is expected to spur new and more projects, preventing long-term budget shrinkage.

Wipro's strategy involves pursuing both small and large AI deals, recognizing that clients across different industries and markets are at varying stages of AI maturity. Pallia acknowledged the existence of intense pricing pressure due to AI's ability to compress delivery timelines and team sizes, but he anticipates a rise in smaller AI deals.

Wipro has been making strategic moves to capitalize on the AI wave. In July 2023, Wipro announced a three-year plan to invest $1 billion in expanding its AI capabilities, big data, and analytics solutions, including research and development. More recently, Wipro launched "Wipro Intelligence," an initiative designed to help clients scale confidently in an AI-first world. This initiative includes AI-enabled industry platforms, delivery accelerators like WINGS and WeGA, and partnerships with startups and universities. Wipro is also upskilling its employees in AI technologies. The company has trained over 87,000 employees in generative AI and is collaborating with 63 Indian colleges to integrate AI-oriented curricula.

Wipro's focus on AI is not just about technology but also about consulting. The company reorganized into four global strategic units—Consulting, Technology Services, Engineering, and Business Process Services—placing greater emphasis on consulting, with the acquisition of Capco taking a central role. Wipro aims to provide AI-led consulting in areas like advisory, data strategy, and change management to ensure reliable, secure, and ethical AI deployment.

Sandhya Arun, Wipro's CTO, believes that 2026 will be a turning point for enterprise AI, with organizations moving beyond fragmented experimentation to fully integrated, enterprise-wide AI ecosystems. These AI systems will operate as interconnected networks managing complex workflows across IT, finance, HR, supply chains, and customer engagement.

While Wipro's management expresses confidence in its AI-first execution strategy, they also acknowledge cautious client spending and the need to execute effectively to win deals. The company's Q4 revenue guidance reflects this caution, with expectations of flat to low single-digit sequential growth. Nevertheless, Wipro's leadership believes the company's pipeline remains strong, anchored by AI-led transformation.