Tuesday, 12 August, 2025
GPT-5 Launch Could Trim 2–3% Revenue from Indian IT Firms: Analysts Warn
OpenAI’s GPT-5 with its advanced coding, reasoning & reduced-error capabilities poses a significant threat to India’s IT services industry. Analysts including Kotak Institutional Equities anticipate a 2–3% revenue decline over 2–3 years as clients leverage AI to automate tasks & demand outcome-based pricingchallenging the traditional model reliant on labor arbitrage. While long-term opportunities exist in cloud, legacy modernization & AI implementations firms must pivot to higher-value services.
Read full story at Economic Times