Table of Contents (6 sections)
AI Has Arrived at the Heart of India’s IT Industry
For decades, India’s IT-services model had a powerful formula:
Hire talented engineers, deploy large teams and bill clients for their work.
Artificial intelligence is now challenging that formula.
Clients increasingly expect technology companies to use AI to complete projects faster, with fewer people and at lower cost.
That shift is forcing India’s massive $315-billion IT-services industry to rethink how it sells work.
From Billing People to Selling Outcomes
Traditionally, many technology-services contracts are closely linked to the number of employees and hours required to complete a project.
AI changes that calculation.
If automation allows a team of 50 people to perform work that once required 100, customers don’t necessarily want to keep paying as though 100 people are still required.
That is helping push contracts toward outcome-based pricing, where payment is linked more closely to measurable results.
Big IT Companies Face New Competition
The transition affects India’s biggest technology companies, including TCS, Infosys, Wipro and HCLTech.
