Artificial intelligence is shaking up India’s $315 billion IT industry. As AI automates routine coding and operations, clients are demanding faster execution, bigger productivity gains, and steep price cuts—forcing giants like TCS, Infosys, and Cognizant to rewrite their business playbook.
- Ending the Billable Hour: Revenue models are shifting from time-and-materials to outcome-based pricing, with clients paying for performance and verified efficiency savings.
- Demanding 25% to 30% Discounts: Armed with AI productivity benchmarks, corporate clients are pushing for significant fee reductions on traditional work.
- Mid-Tier Competitors Steal Market Share: Agile firms like Persistent Systems and Coforge are outmaneuvering industry giants by offering flexible pricing and faster deployment.
- Rethinking the Tech Workforce: Massive hiring of entry-level coders is fading as AI agents handle basic development, shifting talent demand toward specialized senior teams.
Source: Reuters
