AI reset may reshuffle IT pecking order

India’s IT services industry is unlikely to be wiped out by artificial intelligence, but the shift to AI-led delivery could significantly alter the pecking order within the sector, with mid-tier companies emerging as potential beneficiaries and thousands of smaller firms facing a more uncertain future.

Experts and brokerages are increasingly converging on the view that not every IT services company will be able to make the transition to AI-governed operating models. Nasscom president Rajesh Nambiar had earlier this month estimated that 20-25% of players could ultimately be left behind.