The Indian IT industry today stands at a crossroads. With AI threatening to deflate revenues by 2-3% annually and reshape five lakh jobs over the next few years, it’s worth remembering how these giants first ventured beyond Indian shores, taking risks, building trust, and diversifying relentlessly.
Here are 10 defining moments that shaped their global expansion journey.
1971: TCS Takes Its First Step Abroad To Iran
Long before “offshoring” became a buzzword, TCS won its first overseas assignment from an electric company in Iran in 1971. This wasn’t just a contract, it was a declaration of intent. Indian IT firms weren’t going to wait for the world to come to them; they would go to the world.
Why it matters now: In an era where AI is expected to boost IT productivity by 43-45% but also disrupt traditional billing models, the spirit of taking bold bets on unfamiliar territories remains essential.
1974: Delivering Full Software Lifecycle Projects in the UK
TCS delivered a financial accounting solution for a housing society in the UK on behalf of Burroughs in 1974, its first full software development lifecycle project. Around the same time, it was developing System X for the Canadian Depository System and automating the Johannesburg Stock Exchange.
The takeaway: Indian IT firms weren’t just coding, they were solving complex, mission-critical problems across continents and industries. That reputation for reliability became their strongest marketing tool.
1981: Infosys Finds Its First Client—Data Basics Corporation
Infosys’ first client in 1981, Data Basics Corporation, marked the company’s formal entry into software development. It was modest, but it set the foundation for what would become one of the world’s most admired IT services firms. Fast forward to 2025: Infosys has deployed over 100 generative AI agents across client portfolios, helping drive automation and business growth. But it all started with one client willing to take a chance.
1988: Infosys Builds for Reebok France—A European Breakthrough
In late 1988, Infosys built a full distribution package for Reebok France. This project served as a reference point for European expansion and demonstrated that Indian IT firms could serve not just financial services or tech companies, but also retail and fashion brands.
Why diversification matters: Today, as AI disrupts traditional IT services, firms with diversified portfolios across verticals (BFSI, retail, manufacturing, healthcare) are better positioned to absorb sector-specific shocks.
1990s: Wipro Partners with Intel and Sun Microsystems for R&D
Wipro’s early R&D services included porting UNIX to Intel processors and working with Sun Microsystems. In 1993, it entered a joint venture with Beckman Instruments (USA) to produce bio-analytical products, followed by work with GE Medical Systems.
The lesson: Indian IT wasn’t just about low-cost labour, it was about engineering capability. That IP and innovation mindset is now critical as firms race to build proprietary AI platforms like TCS’s Ignio and Infosys’ AI agents.
1994-1995: Infosys’s Strategic Pivot
In 1994, Infosys signed a significant contract with Nordstrom for an employee benefits program, a strategic win that established credibility in the US retail market. Then came the defining moment: in 1995, when General Electric demanded aggressive rate cuts, Infosys made a courageous decision to end the relationship rather than compromise on margins. This wasn’t a loss, it was a strategic choice that prioritised quality over volume.
Why this pivot mattered: The Nordstrom contract validated that premium clients would pay for quality work, while walking away from GE showed the market that Infosys wouldn’t compete solely on price. This dual strategy, winning quality clients and protecting margins, became the blueprint for sustainable growth.
Relevance today: As GPT-5 and other AI tools drive down billable hours, the firms that protect margins through IP-led delivery and outcome-based pricing will survive. Those competing on headcount alone won’t.
1996: TCS and Singapore Airlines Form a Joint Venture
In 1996, TCS and Singapore Airlines established Aviation Software Development and Consultancy (ASDC) to support the airlines’ IT systems. This wasn’t just a client win, it was a partnership that gave TCS deep access to the aviation sector and the APAC region.
Then and now: Strategic alliances remain vital. In 2025, Indian IT firms are partnering with Microsoft, AWS, and OpenAI to integrate AI into client workflows, just as they once partnered with airlines and banks to build credibility.
Late 1990s – Early 2000s: Race to Open Offices Across Europe and APAC
Between 1995 and 2003, all three firms aggressively expanded their physical presence:
Infosys: UK (1995), Canada (1997), Germany, Sweden, Belgium, Australia (1999), UAE, Japan, China (2001-2003)
TCS: Singapore (1985), Australia (1998), China (2002), Malaysia (2003), Philippines (2008), Japan (2014)
Wipro: UK (1996), Japan (1998), Hong Kong and Australia (2002)
Why it mattered: Being local wasn’t optional. Clients wanted proximity, cultural understanding, and the ability to navigate regulations. Today, that same logic drives local hiring. TCS has over 50% local employees in the US, Infosys over 60%, and HCLTech about 80%.
2000s: Building Hybrid Delivery Models to Meet Compliance Needs
As Indian IT firms moved into regulated industries like banking and healthcare, the pure offshore model wasn’t enough. They established near-shore centres in Eastern Europe, Latin America, and closer to client locations in the US and UK.
Today’s parallel: The AI era demands similar flexibility. Firms are blending AI-driven automation with human expertise, moving from time-and-materials contracts to outcome-based pricing that monetises IP, not just labour.
2020s: From Labor Arbitrage to AI-First Innovation Hubs
By the 2020s, Indian IT firms evolved from low-cost service providers to strategic partners in digital transformation. Generative AI and automation are starting to influence delivery models and productivity, and firms are exploring ways to combine human expertise with emerging technologies.
TCS, Infosys, and Wipro are investing in training and AI-enabled platforms, preparing for gradual changes in how services are delivered. The industry remains focused on reskilling and innovation to navigate these shifts.
From bold first steps abroad to cautious adoption of emerging technologies today, Indian IT’s journey shows that risk-taking, innovation, and adaptability remain the keys to staying ahead in a rapidly evolving global market.
Sources: UnearthInsight and official documents of TCS, Infosys, and Wipro
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