Niti Aayog says existing IT services model at risk

Ahead of the India AI Impact Summit, government think tank Niti Aayog in a report released on Tuesday said that India’s technology services industry must fundamentally rework its business model around artificial intelligence and innovation if it is to sustain growth and remain globally competitive.

The report, Technology Services: Reimagination Ahead, has said that incremental scaling of the existing labour-intensive IT services model will be insufficient in a world where AI, automation and platform-led delivery are reshaping how technology services are consumed. Instead, it has called for a decisive shift towards AI-native, outcome-linked and product-led offerings, supported by large-scale reskilling and policy reforms.