AI begins to erode scale edge in IT: Mid-cap firms gain agility, but large deals stay with incumbents

Artificial Intelligence is beginning to weaken the traditional scale advantage enjoyed by the country’s largest information technology services firms, with mid-cap players gaining ground through faster execution, lower-cost delivery and quicker workforce retraining. Yet, in an uncertain macroeconomic environment, global clients continue to favour large incumbents for bigger outsourcing contracts, slowing momentum in large deal wins for smaller firms.