The Indian IT sector is undergoing structural and leadership changes as companies adapt to evolving market dynamics, technological shifts, and operational demands. IT giants like Wipro and LTIMindtree have restructured their business divisions, aligning services with emerging trends like AI and cloud integration.
Simultaneously, the industry is witnessing a wave of CXO-level changes—including CEO transitions at firms like Cyient and GlobalLogic. Experts highlight digital transformation, market fluctuations, and talent optimisation as key drivers behind this reshuffling, shaping the industry’s future trajectory.
Better engagement & transparency
“The restructuring brings decision-making closer to the customer and provides flexibility. Over a period, Indian IT service providers have realised the operating model needs changes to align with emerging client requirements. There are currently challenges as the strategy and execution have gaps. The changes are required to harmonise these and ensure the client gets the value from the capabilities the provider has and drive better engagement and transparency,” said DD Mishra, VP Analyst at Gartner.
This restructuring, coupled with industry-wide CXO-level changes reflects a strategic response to evolving market dynamics, technological disruptions, and the need for operational agility, noted Sarbojit Mallick, Co-founder of Instahyre.
Wipro, which reported a 3.2 per cent y-o-y revenue decline in Q3 FY24, has restructured its business lines—consolidating tech services, consulting, and business process services—to enhance client alignment. Similarly, LTIMindtree, which saw a revenue decline of 2.6 per cent in Q3 FY24, is optimising leadership roles to drive efficiency.
Emerging tech trend
Pareekh Jain, Founder of Pareekh Consulting & EIIR Trend, shared, “Wipro business lines realignment was also triggered by the head of Wipro FullStride Cloud’s exit. They had four divisions — cloud, technology, consulting, and engineering, so they moved to cloud. A few years ago, cloud was the big thing, with companies focusing on separate business units. But now, cloud, data, and GenAI are being integrated. A big trend is the integration of service lines since GenAI and the cloud cannot have separate deal applications. GenAI now encompasses multiple areas requiring analytics, engineering, applications, and cloud services to function effectively.”
Alongside, the IT sector is witnessing a rise in specialised CXO roles, with global firms increasingly appointing chief AI officers to lead AI-driven innovation, Mallick observed.
“Future-ready companies aim to enhance operational efficiency, foster innovation, adapt to market demands, and align corporate strategy with evolving industry trends. That’s why IT companies restructure themselves, and the CXO movement is a reflection of these aims,” Mallick commented.
Digital transformation
Factors driving such changes are digital transformation, with companies wanting to integrate cutting-edge technologies into core operations, necessitating changes in management structures.
Rapidly changing customer preferences and emerging technologies also require organisations to adapt swiftly by altering existing hierarchies.
Retaining top talent and promoting individuals with potential for leadership roles also play a role in reshaping the organisation’s chart. Alongside, pivoting to cloud computing, AI, and cybersecurity, requires a fresh approach to resource allocation and departmental responsibilities, he noted.
