Coforge's AI Strategy: CEO Sudhir Singh on Future Growth

Introduction: AI as a Growth Catalyst

In a clear departure from the prevailing narrative of Artificial Intelligence as a deflationary force in the IT sector, Coforge CEO Sudhir Singh has positioned AI as a powerful growth tailwind. He argues that while AI introduces efficiencies, its primary role is to create new business opportunities and drive strategic transformation. This perspective frames AI not as a cost-cutter that shrinks budgets, but as an engine for innovation that makes technology spending more elastic and outcome-focused. For Coforge, this shift is central to its strategy, which has propelled the company to its position as the eighth-largest Indian IT services firm, a significant leap from its 18th position in 2017.

Shifting from Operations to Strategic Reinvention

Enterprises are at a pivotal inflection point, moving from a focus on operational continuity to strategic reinvention. According to Singh, client budgets are increasingly shifting from 'run the business' to 'grow the business.' While the 'run' side demands measurable efficiency, often driven by AI, the 'grow' side involves broader, more strategic conversations focused on tangible business outcomes. This is where Coforge aims to lead. The company's approach is to proactively solve core business problems, leveraging AI to deliver value that justifies expanded technology investments. This business-led model has been instrumental in Coforge's sustained, industry-leading growth, which saw a 31.5% increase in FY25.

The New Metrics for Success

Sudhir Singh believes the markers of a leading IT firm are evolving. By 2026, he asserts that success will be defined by a new set of metrics beyond traditional financial indicators. 'AI fluency'—a deep, practical capability to apply AI across client operations and internal processes—is paramount. This is complemented by strong momentum in securing large deals, which signals client confidence and future revenue streams. Furthermore, investors and firms should monitor 'deal velocity' and 'revenue per employee' more closely. These forward-looking indicators are considered more predictive of future growth than historical revenue figures alone. Singh also noted the growing importance of EBIT (Earnings Before Interest and Taxes) over EBITDA, as it provides a clearer picture of profitability, especially for companies active in mergers and acquisitions.

Coforge's Financial Performance and Deal Momentum

Coforge's strategy is validated by its strong financial performance and robust deal pipeline. The company's confidence is rooted in a consistent track record of execution over nine consecutive years. In a challenging macroeconomic environment, Coforge closed five large deals in Q1 FY26, putting it on a run rate to sign 20 for the year, a significant increase from the 14 signed in FY25. The company's next 12-month signed order book stands at $1.5 billion, a 47.7% year-over-year increase. This momentum is attributed to a hyper-specialized focus on select industries and deep engineering capabilities.

AI Adoption Across Key Sectors

Coforge is witnessing significant AI-driven disruption and growth across its specialized verticals. In the Travel sector, AI is revolutionizing airline and airport operations. For Capital Markets, AI is critical for enhancing regulatory compliance and customer acquisition. The Insurance sector, particularly specialty insurance, is leveraging AI to accelerate the development of new products and platforms in response to geopolitical complexities. The company's ability to deliver integrated solutions—from setting up data foundations to contextualizing AI applications within complex processes—is what sets it apart. Three of the five large deals signed in Q4 FY25 featured AI-based solutions, underscoring its role as a revenue enabler.

The 'Contrarian Bets' Behind the Transformation

Coforge's ascent under Sudhir Singh, who took the helm in 2017, is the result of several strategic, 'contrarian bets.' One of his first moves was a complete overhaul of the top leadership, bringing in talent from industry giants like TCS and Infosys who had experience with large-scale deals. He also shifted the leadership's center of gravity closer to client markets, with Singh himself based in New Jersey. Rather than being a generalist, the company focused on building deep expertise in niche sub-segments within banking, insurance, and travel. Finally, a revamped rewards system, which quadrupled sales incentives, created a high-performance culture that fueled aggressive growth.

Internal AI Integration and Realistic Expectations

Internally, Coforge is embedding AI into its own workflows to enhance productivity. The company has rolled out a customized AI co-pilot for its sales team and uses its ForgeX platform to accelerate software development and legacy modernization. However, Singh remains pragmatic about the immediate productivity gains, noting that the company is seeing improvements closer to 30%, rather than the 70-80% figures sometimes claimed. The focus is on ensuring that these gains translate into tangible benefits for clients, such as improved pricing power and higher revenue productivity, rather than just internal cost savings.

Outlook and Path to $1 Billion

Looking ahead, Coforge is focused on achieving a 14% EBIT margin in FY26 and is on track to reach its goal of $1 billion in revenue by FY27. The company's strategy remains centered on its execution-first culture, hyper-specialization, and deep engineering capabilities, all amplified by AI. Despite potential macroeconomic headwinds, the leadership's confidence is buoyed by a strong order book and a sales engine primed for closing long-term, large-scale deals. By continuing to focus on wallet share expansion and delivering business-led transformations, Coforge aims to solidify its position as a formidable player in the global IT services landscape.