Microsoft is a household name and needs no introduction. Microsoft is also an omnipresent force in India, with several companies and government agencies using its products, most notably the Office 365 suite. In recent years, the company has also played a pivotal role in helping shape Digital India, and that extends to the country's Information Technology (IT) and IT-enabled services (ITeS) sectors.

In an exclusive interview with CNBC-TV18, Sangita Singh, General Manager, IT & ITeS at Microsoft India, shed insight into the company's goal to foster innovation, enhance digital skills, and promote responsible AI adoption.

She said the ITeS sector has played a pivotal role in India's digital transformation.

"We've cultivated enduring relationships with key players in the ITeS sector — our multi-faceted engagements with TCS, Wipro, Infosys, HCL, Cognizant and Tech Mahindra have spanned several years, all with a shared objective of harnessing Microsoft technologies to propel digital transformation for themselves and their end clients," Singh said.

India's AI Adoption and Innovation in ITeS

Singh acknowledged the significant growth in AI adoption within India's ITeS sector and its transformative impact in recent years. AI adoption in the ITeS sector has played a crucial role in addressing contemporary challenges, she said.

"We have observed that the Indian ITeS sector has started to infuse AI into various facets of operations – empowering employees, creating differentiated customer experiences, optimising their delivery operations and transforming their operating model through automation and designing new products and services," she said, highlighting some of the prominent use cases — document-processing, metric-monitoring, enterprise search, video analysis, and the deployment of chatbots, among others.

She further said the explosion of Generative AI has ushered in a new era of possibilities, characterised by five key themes:

Enterprise Search: AI-driven search solutions are revolutionising how businesses find and manage their data.

Chat with Data: AI-powered chatbots and virtual assistants are becoming more capable of handling data-related inquiries and interactions.

Content Creation and Summarisation: AI is increasingly used to create, curate, and summarize content, saving time and improving efficiency.

Talent Engagement: AI tools are being utilised to enhance talent acquisition, onboarding, and employee engagement.

Copilot for Code: AI-powered code assistance tools are streamlining software development processes.

Leveraging Cloud Computing and AI for Agility and Innovation

Singh said shared examples of ITeS providers leveraging cloud computing and AI to enhance their agility and drive intellectual property-led innovation.

"One notable example is Sutherland, a global provider of digital transformation and customer experience services, which utilised Microsoft solutions to optimise its resources by about 84%. Cyient chose Microsoft Azure to improve accuracy, data extraction speed, and tailor outputs to client requirements after comprehensive OCR tool studies, enhancing its services. Partnerships with HCL and Genpact enable enterprises to leverage Generative AI for enhanced outcomes and business transformation," Singh said.

Impact on ITeS

Singh said Microsoft Research has been instrumental in delivering AI breakthroughs — The company's research in vision, speech, language, and custom machine learning has significantly impacted the ITeS sector.

"Through tools like Azure AI, Power Platform, and Dynamics 365, ITeS players can optimise business processes, functions, and applications. We are also revolutionizing software development in this sector through low and no-code solutions such as Power Platform and AI tools like GitHub Copilot. Our recent collaboration with OpenAI has synergised large language models with Azure's AI-optimized infrastructure," she explained.

AI Offerings for Indian Businesses

Singh said its solutions and offerings empower Indian businesses to harness AI for productivity, enterprise-scale solutions, and enhanced security. Microsoft's AI portfolio includes Azure Applied AI Services, Azure Cognitive Services, and Azure Machine Learning.

Moreover, Microsoft's collaborations with leading Indian ITES companies, including Tech Mahindra, Genpact, Infosys, Cognizant, Hexaware, and HCLTech, cater to the growing demand for AI solutions, she said, ranging from Generative AI-powered Enterprise Search to knowledge ecosystem development.

Future Trends in Indian ITeS Sector

The ITeS sector in India is witnessing a significant trend of heightened AI adoption and innovation. Singh said Microsoft recognises AI as a game-changing technology that empowers organisations to gain business advantages.

"AI’s ability to reason over vast quantities of data allows those who implement it to uncover deep business insights, augment human expertise, drive operational efficiency, transform their products, and better serve their customers, making it even more relevant for ITeS players and their customers," Singh said.

Insights for Businesses

Singh shared insights into the critical capabilities necessary to extract value from AI adoption. These include Advanced Analytics, Data Management, AI Leadership, External Alliances, and Emotional Intelligence. These capabilities are crucial for businesses venturing into the digital age through AI adoption, she said.

"At Microsoft, our commitment to supporting and catalyzing growth and innovation within the Indian ITeS industry remains steadfast. Throughout the recent challenging times, we've collaborated with various industries, including ITeS, to guide them through crises, providing them with essential technology and tools that accelerate their digital transformation," Singh said.

Microsoft posted impressive financial results last week, with a remarkable 13% year-over-year increase in revenue. The company reported total revenue of $50.12 billion in the same quarter last year. Within Microsoft, the Intelligent Cloud segment notably contributed to this growth by generating $24.26 billion in revenue, marking a substantial 19% increase. This segment encompasses a wide range of services and products, including the Azure public cloud, SQL Server, Windows Server, Visual Studio, Nuance, GitHub, and various enterprise services. Notably, revenue derived solely from Azure experienced a substantial 29% surge during the quarter, underscoring the continued strength and growth of Microsoft's cloud computing services.

Also read: Microsoft surges ahead of Alphabet in cloud race with OpenAI bet, enterprise focus