Mid-tier IT services company Happiest Minds announced plans to double its AI and GenAI workforce to over 1,000 by the end of the next financial year, as reported by Business Standard. The company is investing another $3 million in the business to address skill gaps that are leading to lost revenue opportunities. According to managing director Venkatraman Narayanan, the company is either getting pushed out of opportunities or losing revenue because customers would wait only for so long due to lack of skilled resources.
The company is experiencing alarmingly low utilization of 60% in the AI business, compared to the company-wide utilization rate of 82% at the end of December, as reported by Business Standard. To address this gap, the hiring will focus on lateral or experienced professionals who can be deployed immediately rather than requiring training. The target is to raise utilization to about 70% as more people come on board.
Happiest Minds sees revenue potential of about $50 million from the GenAI business over the next three years, according to the company announcement. The company started with 15 projects in the proof-of-concept (PoC) stage and expects GenAI revenue of about $8 million by the end of this financial year. The number of transformative use cases has now risen to 32 in GenAI and agentic AI, with several scaling across customers and verticals.
As reported by Business Standard, CEO Joseph Anantharaju noted that AI-led productivity, modernization of core platforms, and automation programmes are seeing traction as enterprises focus on measurable outcomes and faster time-to-value. The company launched AI First as its 11th strategic transformation, spanning four areas — building advanced AI solutions, AI-native software development, IT service management, and cybersecurity. Growth remained selective, with digital and AI-led programmes holding up better than discretionary spending across the IT sector.
Happiest Minds reported third-quarter results where profit fell nearly 20% to ₹40 crore due to a one-time charge related to the New Labour Code, with the provisional amount being ₹22 crore, as reported by Business Standard. Revenue rose 11% to ₹588 crore during the quarter. The company also launched AI First as its 11th strategic transformation, supported by 11 strategic programmes, with growth remaining selective across the IT sector.
