Honey, (A)I Shrunk The Team…

I run an IT services company. So, when Anthropic announced sometime ago, that it is launching a new enterprise AI services firm along with Blackstone, Hellman & Friedman, and Goldman Sachs, my first reaction was slightly uncomfortable. The model maker is walking down its own value chain and right onto ours.

Listen to this article

The new firm, financially backed by top names, is built for the mid-market that includes community banks, regional health systems, MSMEs, etc. The exact segment that has paid our bills for two decades. The Fortune 500 already have the Claude Partner Network, with Accenture, Deloitte and PwC running their programmes. The mid-market, on the other hand, was supposed to belong to TCS, Infosys, Wipro, HCL, Tech Mahindra and the rest of us in the Indian services ecosystem. Anthropic is not waiting for Indian IT firms to adapt. It is moving directly into their strongest territory. What makes this different is the money behind the firm and with that backing, growth will be exponential.

End of the Offshore Headcount Advantage?
The delivery model is also new. Anthropic’s applied AI engineers will be sitting right along side the customers like clinicians, loan officers and plant supervisors. That collapses three layers we have historically charged for: model partner, systems integrator and offshore delivery centre. And that team is US-based, building for mid-sized American customers. The very segment that has filled Bengaluru’s bench seats since the late 1990s. AI is what makes the geography flip viable. A smaller US team can now ship work that used to require a hundred offshore engineers and a six-month transition plan!

So, what do we do? Stop treating AI assistants as line items. The services firms that will matter five years from now are the ones with the deepest model fluency, not the largest headcount. What matters now is a roadmap, early access and the willingness to co-build instead of wrapping someone else’s API as a services layer. The Indian IT industry has spent twenty-five years building across every regulated industry on earth. When pairing this with frontier models, value proposition holds.

India’s answer
And there is a piece of the answer that is uniquely ours. Sarvam, the Bengaluru startup picked by the India AI Mission to build sovereign foundation model, has now open sourced Sarvam-30B and Sarvam-105B, trained for Indian languages on roughly USD 50 million capital against Anthropic’s and OpenAI’s billions. Sarvam will not out-reason GPT-5 or Claude Opus on a generic benchmark this year. But for Indian government services, BFSI workflows in Hindi and Tamil and for thousand mid-sized Indian enterprises that need AI that actually understands their context, Sarvam is the most relevant model. A robust Indian services industry built on such a foundation model is the closest thing we have. The mid-market is being redefined. Indian IT can lead it or watch a Blackstone-funded firm take it.

Latest

Kobelco launches three new excavators

The company unveiled the SK210, SK215LC and SK230XDLC at...

India, Poland eye doubling bilateral trade

Both leaders set the target of doubling bilateral trade...

Shift Towards Engineering Ownership

The recent U.S. suspension of several major Indian technology...

Navitas Secures Up to USD 20 Mln Growth Capital

The investment is a part of responsAbility’s Asia Climate...

Newsletter

Don't miss

Kobelco launches three new excavators

The company unveiled the SK210, SK215LC and SK230XDLC at...

India, Poland eye doubling bilateral trade

Both leaders set the target of doubling bilateral trade...

Shift Towards Engineering Ownership

The recent U.S. suspension of several major Indian technology...

Navitas Secures Up to USD 20 Mln Growth Capital

The investment is a part of responsAbility’s Asia Climate...

Balkrishna Industries, Pirelli in pact for tyre production

India is today one of the most attractive automotive...

Kobelco launches three new excavators

The company unveiled the SK210, SK215LC and SK230XDLC at its Sri City manufacturing facility. The new models combine Japanese technology with locally sourced components,...

India, Poland eye doubling bilateral trade

Both leaders set the target of doubling bilateral trade by 2030. Modi invited Polish companies to expand their investments and operations in India and to...

Shift Towards Engineering Ownership

The recent U.S. suspension of several major Indian technology companies, including TCS, Infosys, Wipro and HCLTech, from the Permanent Labor Certification process has renewed...