GLOSSARY: What Accenture’s FY25 Q3 Signals for Indian IT

What Accenture's FY25 Q3 Signals for Indian IT

THE BELAMY

WEEKLY NEWSLETTER OF AIM

Monday, Jun 23, 2025 | By Amit Raja Naik

Accenture didn't just report $1.5 billion in generative AI bookings in Q3 FY25, it quietly rewrote the playbook on how services firms should be structured in the AI era.

While Indian IT majors continue to juggle between verticals and service lines, Accenture has collapsed its consulting, technology, operations, and even creative arms into a single AI-centric powerhouse called Reinvention Services, led by Manish Sharma, currently the CEO of The Americas at Accenture.

It's not just a rebranding exercise. It's a complete realignment, with one goal: to deliver AI-first transformation on a massive scale. And it comes at a time when TCS, Infosys, Wipro, and HCLTech are still putting out generic statements like "AI is part of every deal."

Accenture booked $1.5 billion in GenAI deals this quarter, bringing its total to $4.1 billion in just three quarters. That's not a pipeline—it's revenue.

Accenture chief Julie Sweet made it clear: the company is "laser-focused on delivering measurable value," not just consulting slides. In Q3, 30 clients booked over $100 million each. Accenture's AI isn't in proof-of-concept mode. It's in production.

So what does this mean for Indian IT? Before we get into the details, let's take a quick look at some of the top stories of the week:

2025 is NOT the year of AI agents. At YC's AI Startup School, Andrej Karpathy, the founding member at OpenAI and founder at Eureka Labs, talked about how software is changing (again), adding that we are getting ahead of ourselves. "When I see things like '2025 is the year of agents,' I get very concerned… this is the decade of agents," he added.
Is coding dead? Not quite. A new benchmark from top universities shows that AI models from OpenAI, Google, and Anthropic failed to solve even a single 'Hard' coding problem, proving that when it comes to complex reasoning and novel insights, humans are still very much in the loop.
The generation raised on GenAI may never get a job as AI is taking them before they even begin. With entry-level roles vanishing, internships shrinking, and fresh grad hiring cut by over 50%, Gen Z isn't competing with AI; they are being locked out by it.

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[Branded] Data modelling is dead. Can AI bring it back to life? Sunil Patil from Genpact believes so. Once a cornerstone of every data initiative, modelling was sidelined by the "move fast and break things" culture. But with agentic AI, he says, we can restore structure, context, and clarity—without slowing down. Read the full story.

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[Must Watch] In our debut episode of The Power Exchange podcast, Union Minister Nitin Gadkari gets candid about India's transport revolution—from building 38 km of highways a day to hydrogen cars, flying buses and more. [Watch the full episode now]

What Indian IT Calls AI Washing, the World Calls Progress

Indian IT, meanwhile, is still treating AI like a layer to be added, rather than a foundation to build on. Despite claims of 500+ AI projects, not a single large firm has disclosed exact GenAI revenue. TCS has been silent on its $1.5 billion pipeline; Infosys and Wipro repeatedly speak of hundreds of projects, yet offer no clarity on conversion or revenue.

Even HCLTech, the most transparent of the lot, shared engagement numbers without financial context. And Tech Mahindra's "AI Delivered Right" branding is being weighed down by flat growth.

That's the gap. Accenture is not only delivering results, it's restructuring its entire business around AI. And that means faster execution, seamless cross-functional delivery, and end-to-end value. Reinvention Services unifies everything under one roof, allowing speed, scale, and accountability—three things Indian IT continues to struggle with.

On talent, too, Accenture is moving fast. It will train 80,000 employees in GenAI by FY26. Its Q3 revenue rose 8%, margin widened to 16.8%, and full-year guidance was raised again. That's what winning in the AI era looks like.

Indian IT? Infosys posted a 4.2% QoQ revenue drop. Wipro expects further decline. HCLTech is flat. TCS grew just 0.8%.

Mid-tier firms are showing some fight—Coforge signed a $1.5 billion AI-led deal with Sabre, EXL says 53% of its revenue now comes from data and AI, LTIMindtree launched a 300-agent GenAI unit, and Persistent Systems has an agentic AI roadmap. But most of them still speak in the future tense.

Sonata Software has a $34 million AI pipeline and says AI will contribute 20% to revenue over the next 3 years. That's a long time in a fast-moving market.

Meanwhile, Accenture has already shifted from legacy to AI-native. It didn't wait for clients to ask for AI. It built the org to deliver it flawlessly, end-to-end.

Happiest Minds has also carved out a dedicated Generative AI Business Unit, separate from its core digital services, to triple down on enterprise adoption, clocking $1.5 million in FY24 and eyeing $5 million this year, with broader AI revenue nearing $15 million. Check out the full interview here.

Indian IT needs to look beyond pilots and PoCs. The client isn't buying "intent." They want RoI. They want integration. They want outcomes. Reinvention Services is Accenture's answer. Indian IT hasn't figured out the question yet.

If Indian IT doesn't structurally change now, the window may shut, because AI isn't just reshaping software—it's rewiring services.

All Eyes on Q1 FY26 The real test begins next month. Indian IT majors will begin announcing their Q1 FY26 results starting July—and that's when we'll find out if any of them have truly moved the AI needle.

Until then, Accenture has set the standard. It's up to Indian IT to prove that it can not only talk AI—but deliver on it.

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