{"id":1027353,"date":"2026-08-08T08:46:42","date_gmt":"2026-08-08T03:16:42","guid":{"rendered":"https:\/\/telecomlive.in\/web\/?p=1027353"},"modified":"2026-08-08T09:12:56","modified_gmt":"2026-08-08T03:42:56","slug":"why-it-sector-may-face-tough-year-ahead-kotak-warns-ai-gains-cant-offset-revenue-deflation-for-tcs-infosys-hcltech","status":"publish","type":"post","link":"https:\/\/telecomlive.in\/web\/2026\/08\/08\/why-it-sector-may-face-tough-year-ahead-kotak-warns-ai-gains-cant-offset-revenue-deflation-for-tcs-infosys-hcltech\/","title":{"rendered":"Why IT sector may face tough year ahead \u2013 Kotak warns AI gains can\u2019t offset revenue deflation for TCS, Infosys, HCLTech"},"content":{"rendered":"<p>Is AI emerging as a double-edged sword for the IT sector? While companies are seeing rapid growth in AI-related business, it is also creating deflationary pressure in traditional IT services by reducing development volumes and increasing pricing pressure. As a result, Kotak Institutional Equities expects the sector to face another challenging year. <\/p>\n<p>\u201cIT companies will face headwinds from another year of moderate growth, pricing pressure in the base business, AI-related investments and transition costs in deal ramp-ups,\u201d Kotak added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is AI emerging as a double-edged sword for the IT sector? While companies are seeing rapid growth in AI-related business, it is also creating deflationary pressure in traditional IT services by reducing development volumes and increasing pricing pressure. As a result, Kotak Institutional Equities expects the sector to face another challenging year. \u201cIT companies will face headwinds from another year of moderate growth, pricing pressure in the base business, AI-related investments and transition costs in deal ramp-ups,\u201d Kotak added.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,4,12],"tags":[],"class_list":["post-1027353","post","type-post","status-publish","format-standard","hentry","category-it-2-the-financial-express","category-newspapers","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1027353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1027353"}],"version-history":[{"count":1,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1027353\/revisions"}],"predecessor-version":[{"id":1027364,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1027353\/revisions\/1027364"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1027353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1027353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1027353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}