Mphasis has emerged as one of the most assertive AI adopters in the Indian IT sector, reporting record contract wins of $760 million in the June quarter, with 68% of them driven by AI initiatives. According to Ramanathan Srikumar (Sri), Chief Solutions Officer at Mphasis, this success is the result of long-term strategic bets on innovation, dating back to the launch of Next Labs in 2015, which has explored cutting-edge technologies including AI and quantum computing. “We started playing with LLMs when it was not in the popular lexicon,” Srikumar said, emphasizing that the company’s approach has consistently focused on reducing repetitive tasks and maximizing domain expert productivity.
Mphasis is embedding AI deeply across its workflows, most notably through its flagship platforms NeoCrux and NeoZeta. NeoCrux integrates AI agents directly into developer IDEs to enhance software development lifecycle (SDLC) efficiency, while NeoZeta unlocks knowledge from legacy systems to accelerate modernization efforts. Demonstrating its AI capabilities, Mphasis even briefly topped Hugging Face’s DABStep challenge, outperforming technology leaders such as Google and Microsoft. “The ability to write multi-step reasoning agents and our experience in automating processes helped,” Srikumar noted.
Strategic alliances are a cornerstone of Mphasis’ AI strategy. The firm recently partnered with Sixfold to deliver AI-powered underwriting solutions, won an AWS Partner Award for the airline industry, and is co-developing a financial services product platform with AWS. “Partnerships are extremely important in this field because we can’t do everything,” Srikumar said, highlighting Mphasis’ focus on domain-specific collaborations that deliver measurable customer value.
At a time when AI is viewed as the great equalizer for mid-sized IT services firms, Mphasis is redeploying its margins into AI investments rather than maximizing near-term profitability. “IT service is not going to die. It’s only the nature of service that is going to change,” Srikumar said, aligning with Infosys co-founder Nandan Nilekani’s optimism that Indian IT will thrive in the AI era.
Mphasis’ approach signals a deliberate move to transform enterprise IT services through applied AI, balancing innovation, partnerships, and scalable platforms to stay ahead of the curve.
