Indian IT services company Tech Mahindra has partnered with SpaceXSI to help businesses upgrade older software systems and speed up software development using AI. Announced on Thursday (October 22, 2026), the collaboration brings AI-assisted coding into enterprise technology services, as companies look for ways to modernise their systems and improve development efficiency.
The partnership also marks the first collaboration between a major Indian IT services company and SpaceX’s AI division, according to Reuters. Tech Mahindra plans to use the partnership to support businesses across several industries.
AI to Help Modernize Legacy Software
Many businesses still rely on software built years ago. Updating these systems can be time-consuming, particularly when companies need to maintain existing operations while introducing newer technologies.
Tech Mahindra and SpaceXSI aim to address this challenge by using AI to support application modernisation and streamline software development. The approach is intended to help enterprises move faster when updating their technology infrastructure and developing new applications.
AI-assisted development tools can support tasks such as writing and improving code, allowing software teams to focus more time on complex engineering work. The partnership is expected to bring these capabilities into Tech Mahindra’s services for enterprise customers.
Grok Build to Support Industry-Specific Solutions
As part of the agreement, Tech Mahindra will bring SpaceXSI’s Grok Build into its software engineering services. The tool will be used to help develop solutions tailored to specific industries.
The companies plan to focus on sectors including technology, telecommunications and banking and financial services. These industries depend on large software systems to manage operations, customer services and digital platforms, making software modernisation an important part of their technology plans.
The collaboration is expected to combine Tech Mahindra’s IT services expertise with SpaceXSI’s AI development capabilities. However, the companies have not publicly disclosed financial details of the partnership in the Reuters report.
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Tech Mahindra Expands Its AI Partnerships
The agreement adds SpaceXSI to Tech Mahindra’s existing AI partnerships. The Indian IT firm already has similar arrangements involving Google’s Gemini and Microsoft technologies. The move comes as IT service providers look to expand their AI offerings beyond experimentation and into practical business applications. Companies are increasingly exploring how AI can help developers work more efficiently, update ageing systems and deliver software faster.
For Tech Mahindra, the SpaceXSI partnership creates another route to bring AI-powered development tools into enterprise projects. Its impact will depend on how effectively businesses can integrate these tools into existing workflows while maintaining software quality, security and reliability.