AI grows, but IT top line still lags
Domestic IT firms are beginning to report meaningful revenue from artificial intelligence, but the gains are yet to translate into stronger overall growth. This is because AI-led work is increasingly replacing traditional outsourcing rather than adding to it, highlighting the industry’s biggest challenge in the early stages of the technology shift.
The April-June quarter earnings underscored this disconnect. AI revenue and large deal wins climbed across most large IT firms, yet topline growth remained muted and guidance for the rest of FY27 turned more cautious.
