Are you feeling lonely? Know what prolonged isolation does to your brain and bodyAlways spacing out or feeling disconnected, even in a room full of people? Find out the ramifications loneliness can have on your health. Updated on: May 21, 2026 2:10 PM IST By Adrija Dey Share via Copy link The
Chip giant Nvidia on Wednesday (May 20, 2026) posted record quarterly revenue of $81.6 billion, blowing past Wall Street forecasts as insatiable demand for its artificial intelligence hardware powered another blockbuster quarter. The results for the first quarter of fiscal 2027, ending April 26
Manifesting a BMW at 26 to buying it: Bengaluru techie's viral video captures parents' pure joyThe Bengaluru techie posted a video which captures what his parents thought about him buying a BMW. Updated on: May 21, 2026 12:16 PM IST By Trisha Sengupta Share via Copy link A heartwarming video of a
“Mexican authorities arrested the municipal president of Atlatlahucan and five other political figures in an investigation into corruption and organised crime in central Morelos state,” special prosecutor Ulises Lara said in a video message late on Wednesday
U.S. President Donald Trump is expected to sign an executive order on Artificial Intelligence (AI) and cybersecurity as soon as Thursday (May 21, 2026), two sources familiar with the matter told Reuters, as pressure grows from parts of his political base to increase oversight of new AI models
AI, H1B disruption: How IT SMEs can pivot toward $1.5 trillion infrastructure to keep jobs
AI, H1B disruption: How IT SMEs can pivot toward $1.5 trillion infrastructure to keep jobs Premium
The Indian technology industry has 10,000+ Small and Medium Enterprises (SMEs) dedicated to providing either traditional or digital solutions to the technology buyers. This subsegment contributes to 7-9% of the overall technology industry revenue (FY 23) in India and employs some 7.5 lakh people.
Some 80% of these SMEs were estimated to offer traditional IT and subcontracting services primarily with digital services as a growing pie. However, the twin challenges of evolving global immigration policies, particularly the H-1B visa changes, and Artificial Intelligence (AI) have created significant headwinds for the SME industry
For decades, the industry thrived on a staff augmentation model, leveraging wage arbitrage to provide talent for routine IT tasks. However, this traditional playbook is rapidly becoming obsolete. Immigration policies in developed countries are becoming more stringent, increasing talent mobility's complexity and cost.
Although the India-UK FTA talks involve deeper mobility provisions, plans for their implementation are unclear and the overall global trend is towards tighter immigration regimes. AI software is quickly automating mundane coding, testing, and maintenance tasks—the bread-and-butter services that established the industry. Clients increasingly wonder why they should pay top dollar for work that AI helpers can deliver at a fraction of the price.
Meanwhile, a huge infra opportunity—fuelled ironically by the same AI threat to software services—remains largely untapped by Indian IT SMEs. Data centres, undersea cables, and renewable energy systems require hundreds of thousands of engineers. In contrast to software services, this cannot be easily automated or outsourced offshore.
Indian IT small and medium businesses have a strategic dilemma before them: keep refining a business model under pressure or shift towards infrastructure and specialized services where Indian engineering talent may have an undisputed lead.
Global data centre capital spending stands at around $1.5 trillion until 2030, fuelled by AI computing needs, cloud growth, and emerging economies' digital infrastructure buildout. Market estimates point toward substantial labour gaps in data centre engineering, especially for specialty positions: MEP (mechanical, electrical, plumbing) engineers, power system experts, cooling engineers, and commissioning professionals.
These experts charge $150-200 an hour—well beyond rates for standard software programmers. And most importantly, this task necessitates physical presence, niche certifications, and sectoral expertise that establishes high barriers to entry and defendable competitive standing.
Indian engineering training generates high-quality mechanical and electrical engineering professionals—exactly what infrastructure services require. The project management skill set built over several decades of IT delivery can be directly applied to large-scale infrastructure projects. Indian cost models allow for pricing competitiveness without sacrificing healthy margins.
But Indian IT companies, especially SMEs, are still overwhelmingly concentrated on software services. Infrastructure is “different” from other areas of IT, with unknown spaces such as power systems and cooling technology. This cultural reluctance is losing the industry a huge opportunity.
Acquisition: Organic development of power and infra skills can take years, but acquiring small specialist firms (Micro data centre start-ups, renewable energy integrators, subsea cable designers) in India, U.S. or Europe accelerates the transition. With $3-8M, Indian IT firms can buy established teams, customer bases, certifications, and credibility overnight.
Data annotation and labelling CoEs: Data annotation remains an immediate revenue opportunity. AI model training requires large amounts of labelled data, which can be processed offshore with no visa dependency. India's cost advantage here drives major savings (up to 70-80%) and offers $25-30M annual revenues at scale with healthy margins.
Geographic expansion: Reducing reliance on a single market lowers policy risks. Setting up in the UK, Canada, or the Middle East—all of which require initial investment and market adaptation—improves resilience. Systematic geographic buildout should reduce US-market dependency from 70-80% to 40-50%, while maintaining diversified growth.
Timeline and leadership: The window of opportunity is short—probably just 18-24 months. As the margin squeeze tightens, SMEs need to overcome cultural reluctance towards infrastructure (“megawatts, cooling towers, data centre builds”) and invest in newer capabilities.
Today's leaders face a bifurcated future: streamline legacy models under growing pressure or disruptively shift into infrastructure and specialist services. The market will not reward straddling both sides. Companies that specialize and adapt decisively will thrive, while those slow to change risk being left behind. The Indian IT sector was built by visionary action in the past; the next generation must act with similar resolve to lead infrastructure buildouts, not just digital migration.
Indian IT SMEs need to focus on two upskilling its workforce with strong enterprise AI skills (like prompt engineering, AI architecture, and AIOps), frontier technology skills (such as quantum machine learning and Neuro-haptics), and advanced AI research abilities (“AI for AI” roles including LLM development and interdisciplinary innovation.
AI skills need to be complemented with Mechanical, Electrical, or Civil Engineering degrees for roles in data centre infrastructure, energy systems, power distribution, HVAC, and commissioning roles. Vocational diplomas/certifications in data centre design, energy management, automation, building commissioning, and green technologies, as well as specialized sector accreditations (e.g., PMP, Uptime Institute accreditation, LEED AP) are much needed for building credibility in the industry.
(The author is an Emerging Technology expert with experience in setting up DeepTech public private partnerships and policy advisory in areas of AI, IoT, Quantum,5G, Geospatial, Autonomous and Data Centre Technologies.)
Published - October 27, 2025 07:53 pm IST
Source: The Hindu
Related Posts: Irrfan Khan was in immense pain while shooting Angrezi Medium GST Reforms In Mining Sector To Boost Housing And Small-Scale Enterprises Tourism industry strengthens when local enterprises have access to finance Nearly half of Indian enterprises polled embedded AI into biz strategies Why enterprises should step forward at the ET Most Innovative AI Product 2026 Adani Enterprises ₹25 Why enterprises are turning to hackathons and open innovation ecosystems for the next big breakthrough India is becoming ElevenLabs’ key growth engine as enterprises scale voice AI ET AI Awards 2025 set to spotlight enterprises leading India’s AI charge Why enterprises are watching hackathons more closely than ever
Inside her kitchen in the Indian capital, Delhi, 55-year-old Nirmal Rao lays out a tray of boiled turmeric to dry in the afternoon sun. On the counter beside it, she slowly tips yesterday's dried batch into a mixer, grinding it into a fine golden powder.Inside her kitchen in the Indian capital
1 hours ago
If you are trying to get around Delhi-NCR on Thursday, brace yourself. A three-day strike by auto-rickshaw and taxi unions has taken traditional transport off the roads, and app-based cab services are staring at major disruption — meaning longer waits, fewer rides
1 hours ago
Arsenal supporters around the world erupted in celebration after the North London club secured their first Premier League title in 22 years, but fans in Botswana briefly believed they had received an extra reward — a public holiday in honour of the triumph
1 hours ago
Small-cap stock under ₹50: Take Solutions share price hits their 5% upper circuit at ₹27.98 on Thursday after the company reported a turnaround in profitability during the March quarter, aided by recovery in operations and continued focus on healthcare technology and AI-driven businesses
1 hours ago
SpaceX, founded by Elon Musk, is now a dominant force in the commercial space industry, aiming for Mars colonization and Moon missions with its Starship rocket. The company is also developing Starlink and plans a massive IPO. Despite early failures
1 hours ago
Picking India’s likely 11 for the Afghanistan ODIs: will Rohit Sharma get in amid his fitness concerns? Who will open with Shubman Gill? The Board of Control for Cricket in India (BCCI) announced a 15-member ODI squad for the three-ODI series against Afghanistan on Tuesday
1 hours ago
Sara Tendulkar calls out post calling her ‘moti’: 'You are disgusting, leave us alone'Sara Tendulkar criticises a photojournalist for derogatory comments about her appearance – her strong response highlights today's intrusive paparazzi culture. Published on: May 21
1 hours ago
In a big development in the Kim Soo Hyun and Kim Sae Ron dating scandal, it has now been reported that the South Korean prosecutors have sought an arrest warrant against the head of the controversial YouTube channel Garosero Institute over allegations of defamation and spreading false information
1 hours ago
As artificial intelligence rapidly transforms the global technology industry, major software companies that built multi-billion-dollar businesses around traditional software and IT services are beginning to face mounting disruption. Adding to concerns across the sector, Dario Amodei
1 hours ago
May 21, Birthday Horoscope: Here's what the tarot cards have in store for youIf your birthday falls on May 21, here’s what your year ahead looks like, as per Tarot. Published on: May 21, 2026 11:00 AM IST By Kishori Sud Share via Copy link If you were born on May 21
1 hours ago
Hardik Pandya, captain of Mumbai Indians, was fined 10 percent of his match fee and handed one demerit point following an on-field incident during the IPL 2026 clash against Kolkata Knight RidersatEden Gardens. Pandya was penalized for forcefully knocking the wicket bails during the match and later
1 hours ago
With two Congress legislators inducted into chief minister Vijay’s expanded Tamil Nadu cabinet, the Congress is now part of the ruling establishment across all four major southern political centres—Karnataka, Telangana, Kerala and Tamil Nadu—marking a significant consolidation for a party
1 hours ago
Life Insurance Corporation of India (LIC) is set to announce its Q4FY26 results this week. It is a leading state-owned insurance firm headquartered in Mumbai. The company was founded on Sept. 1, 1956, through the merger of over 200 insurance companies
7 hours ago
Elderly woman killed, 16 injured after AC explosion triggers fire at Dehradun hospitalThe incident took place at Panacea Hospital near Rispana Bridge at around 9.35 am, and the deceased was identified as Veeravati Published on: May 21, 2026 7:38 AM IST By HT Correspondent Share via Copy link A
7 hours ago
Two US men plead guilty to helping Indian call centres scam elderly AmericansThe FBI said the two Americans also advised Indian call centres on how to avoid detection in tech fraud. Published on: May 21, 2026 7:26 AM IST By Trisha Sengupta Share via Copy link Two American tech executives have
7 hours ago
‘Please gather any personal items and head home’: Meta tells laid-off employees. Read full text of layoff emailMeta carried out a fresh round of layoffs on Wednesday, informing thousands of employees that their roles were being eliminated Published on: May 21
7 hours ago
The EPFO has increased its emphasis on reducing litigation and expediting grievance redressal while also being ready to meet members on WhatsApp for continuous support. New Delhi: The Employees’ Provident Fund Organisation (EPFO) is planning to introduce WhatsApp-based chatbot services to enhance
7 hours ago
Parle stock's ‘melodious’ moment as price rises 5% after PM Modi gifts Melody to Meloni. But there is a twistAs PM Modi gifted a pack of Melody toffees to Italy's Meloni, the Parle stock rallied, but it was the wrong Parle. Updated on: May 20
7 hours ago
Love Horoscope Today for May 21, 2026: The love that emptied you may leave, and what fills you may stayLove Horoscope Today: Find daily astrological predictions for all sun signs. Published on: May 21, 2026 7:30 AM IST By Kishori Sud Share via Copy link Aries Love asks you to think bigger today
7 hours ago
MELBOURNE, Australia (AP) — An Australian judge fined X Corp. 650,000 Australian dollars ($465,000) on Thursday for failing to provide information to an online safety watchdog in 2023 about how it tackled child sexual exploitation content. Federal Court Justice Michael Wheelahan also ordered the
7 hours ago
India’s spam conundrum, and Amkette proves all mice matterBeyond the regular noise, a closer look at personal technology. 21 May 2026 Published on: May 21, 2026 8:00 AM IST By Vishal Mathur Share via Copy link Opening thoughts. WD, formerly Western Digital, has done something rather interesting
7 hours ago
Dy CM dismisses buzz around ministers’ meetSpeculation about Karnataka's leadership surfaced as CM Siddaramaiah and Deputy CM Shivakumar interacted amid discussions on governance and succession. Published on: May 21, 2026 7:22 AM IST By HT Correspondent
7 hours ago
Keywords: RBI approved personal loan apps, best loan app RBI registered, online loan app RBI registered, trusted loan app in India, personal loan app Transforming the entire borrowing experience, personal loan apps have come a long way. Users have switched from the traditional banking systems and
7 hours ago
Free scooty scheme: Yogi asks officials to fix eligibility criteria, come better prepared next timeUttar Pradesh finance minister Suresh Khanna announced the Rani Laxmi Bai scooty scheme in the state budget for 2025-26. A year later, in February 2026
7 hours ago
As AI adoption accelerates, organisations are increasingly turning to builders, developers, and innovation communities for breakthrough ideas. Hackathons are emerging as powerful ecosystems for discovering talent, testing new technologies, and shaping future-ready solutions collaboratively
7 hours ago
The rupee touches record low of 96.90 against the US dollar in early trade, marking a depreciation of 7.8% since the beginning of this year and 13.33% compared to May 20 last year. The Indian rupee has come under intense pressure in 2026, sliding to a fresh all-time low against the US dollar amid
7 hours ago
The BJP strongly criticised Rahul Gandhi over his remarks against the Prime Minister. Congress leader Rahul Gandhi has intensified his criticism of Prime Minister Narendra Modi over his foreign visits, this time attacking the viral “Melody” moment involving Italian Prime Minister Giorgia Meloni
7 hours ago
