Thursday, 30 April, 2026
AI-Led Deflation Pressures Indian IT Margins While Sparking Innovation Wave
By Isha
Indian IT firms are grappling with "AI-led deflation" as automation reduces the billable hours traditionally used in legacy service models. This shift is squeezing profit margins but simultaneously forcing companies to pivot toward high-value innovation. By integrating generative AI, these firms are evolving from labor-intensive providers to strategic partners, focusing on platform-based solutions and specialized consultancy to offset revenue losses.
Read full story at Economic Times