Microsoft Partners With TCS, Wipro & Cognizant For Copilot

Microsoft has announced major AI deals with India’s top IT firms. Tata Consultancy Services, Wipro, Cognizant and others will deploy large numbers of Microsoft Copilot licences and agentic AI tools across their businesses. Microsoft also linked these deals to a wider India investment and a big skilling push. What could these partnerships mean for India’s IT sector and for companies that supply AI services?

Deal Size And Scope

Microsoft and the Indian IT firms agreed to deploy Copilot and related agentic AI systems at scale. Each company plans to roll out more than 50,000 Copilot licences. Altogether, the four large firms will deploy over 200,000 licences. This represents one of the largest enterprise Copilot rollouts seen so far. The moves form part of Microsoft’s broader AI expansion in India, backed by a multibillion-dollar investment plan and national skilling commitments.

These licences will be used across functions such as software engineering, IT operations, customer service, and internal productivity tools. The aim is to automate routine tasks, speed up code and content generation, and build agentic systems that can run multi-step processes inside enterprises. The IT firms said they will combine Microsoft’s tools with their own services to sell AI solutions to global clients.

Why Does This Matter For Revenue And Skills?

What makes this deal material is scale and product mix. Large licence counts mean recurring software revenue for Microsoft and new service revenue for the IT firms. For the Indian companies, the agreements create a clear path to sell AI-enabled services to global customers. Analysts anticipate an accelerated rate of expansion in AI initiatives, which in many cases have a better margin than old IT projects. Another announcement that Microsoft made is a huge skilling programme wherein millions of people will receive training on AI skills, which contribute to the creation of supply in these projects.

However, execution matters. The IT firms must integrate Copilot into client workflows, manage data privacy, and ensure safe, reliable outputs. Enterprises buying AI solutions will look for measured results, such as faster development cycles or clearer cost savings. Early contract wins and the pace of enterprise adoption will show whether the licences convert into material revenue growth.

What To Watch Next?

How quickly will licence rollouts become billable work? Track announcements of enterprise deals that bundle Copilot licences with consulting, system integration, and managed services. Also watch reported annual recurring revenue (ARR) from AI services at the listed IT firms, and any upward revisions to margin forecasts tied to AI projects.

Second, monitor hiring and skilling metrics. Microsoft’s training targets and the IT firms’ recruitment for AI roles will indicate whether talent supply is expanding fast enough. Third, check regulatory and data-sovereignty moves. Large enterprise use of AI depends on clear rules on data handling, model governance, and liability. Any policy shifts will affect how companies deploy agentic AI.

Finally, gauge competition. Other cloud and AI vendors will seek similar tie-ups. If the big Indian IT firms show early, measurable wins, they may capture larger shares of global AI spending. If adoption lags or integration costs rise, the revenue upside will slow. The core question is, will these licence commitments lead to lasting, high-margin AI revenue growth for IT firms, or will they stay a short-term productivity boost with limited monetisation?

Sources:

Microsoft
The Times of India
The Economic Times
businessworld.in
The Economic Times