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Home » AI leads to increased technology spending: Coforge – Technology news
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AI leads to increased technology spending: Coforge – Technology news

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Artificial intelligence (AI) is remodeling itself technology spending and drive growth in the IT sector, according to Sudhir Singh, CEO of Coforge.

Singh spoke to FE about how AI has positively influenced demand and enabled the company’s growth trajectory. “AI has had a very positive impact on technology spending and, by extension, addressable demand. This has been key to boosting our pace of growth,” he said.

Although standalone AI projects remain small, Singh emphasized that most AI initiatives are integrated into larger data-driven programs. Coforge’s contributions in the field of AI include creating scalable data pipelines, assessing customer data maturity, data vectorization, and creating infrastructure for deploying AI models . These efforts closely align with emerging trends such as Large Language Models (LLM) and “LLM in a box” solutions.

Coforge’s proprietary AI platform, Quasar, plays a central role in these developments. Quasar, a technology-neutral agentic AI platform, includes 32 submodules that support various use cases, almost all of which leverage agentic AI technology.

Global Capacity Centers (GCCs) remain a cornerstone of Coforge’s strategy. Singh said GCCs contribute around 10% of the company’s revenue.

“We engage with GCCs through various models such as build-operate-transfer, joint ventures and augmented support. For example, we recently helped a client establish an 800-person center in Hyderabad and scaled another AI-driven GCC to 400 people in three months for a Fortune 10 client,” he said .

Singh described calendar year 2025 as a “year of strong growth,” with Coforge reporting annual growth of over 27% and year-on-year growth of over 40%. Specific verticals such as BFSI and journey were the key to this success.

For the December quarter, Coforge reported consolidated net profit growth of 3% sequentially to Rs 206.4 crore, while operating revenue grew over 8% to Rs 3,318.2 crore. Order intake remained strong, exceeding $500 million for the second consecutive quarter.

“The speed and median transaction size are increasing, indicating sustained momentum,” Singh said.

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