IT earnings show AI reshaping business models, not just growth prospects

India’s IT Q1 earnings show that AI is reshaping business models, not just boosting growth, as companies reorganise operations, shift to outcome-based pricing and reposition themselves as enterprise AI platforms.

The shift was visible across both large-cap and mid-tier companies firms such as TCS, Infosys, HCLTech, Wipro, Tech Mahindra, Mphasis, LTIMindtree and Coforge. While their strategies differ, management commentary points to a common conclusion that AI is beginning to redefine the economics of IT services.