Wipro CEO Srini Pallia | Photo credit:
As budgetary constraints ease, Wipro is bidding for several small AI deals in addition to large and mega deals, Pallia said on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland, without giving details. “We are going after both (small and large deals) because different customers, different industries and different markets are at different stages of maturity,” he told the Reuters Global Markets Forum.
Price pressure
Pallia acknowledged that pricing pressure is high as AI compresses delivery times and team sizes, but predicted that there will be more small deals thanks to AI.
India’s IT sector, which has an annual turnover of about $283 billion, has been hit by corporate cuts in technology spending for several quarters as customers focused only on essential or cost-saving initiatives amid geopolitical turmoil and macro uncertainties.
Enterprise AI spending is shifting from experimentation to responsibility, and Wipro offers both AI consulting and IT services for this transition, he said.
“For our customers, 2025 was more about deploying AI, proof-of-concepts and delivering productivity benefits. That will change dramatically in 2026 as boards and CEOs ask them where the return on investment lies,” Pallia said.
Pallia did not expect technology budgets to increase dramatically, but said customers are optimizing their spend and adopting cost-saving technologies.
Productivity gains
Developing AI-enabled software will cost about 25% less, with significant productivity gains in coding and testing, he said. That will translate into “new and more projects, (and is) the reason why IT budgets will not shrink in the long term,” he said.
Wipro launched a three-year plan in 2023 to invest $1 billion to improve its AI capabilities.
Published on January 21, 2026
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