India's IT sector faces pricing pressure and cost cuts due to AI adoption, while new demand opportunities emerge, according to a Kotak report.
Why it matters
This report highlights the dual impact of AI on India's crucial IT services sector. While AI adoption is creating cost pressures and forcing companies to re-evaluate their pricing strategies, it is also opening up new avenues for growth and service offerings. This dynamic will shape the future competitiveness and profitability of Indian IT firms.
AI is making it harder for Indian IT companies to charge as much for their services, so they are cutting costs. However, AI is also creating new business for them.
SIS Ltd, a security and facility management firm, aims for Rs 20,000 crore revenue by FY27 and plans to significantly expand its workforce by 2030, leveraging AI for improved customer service and operational efficiency.
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