AI squeezes billing rates across India's largest IT companies
India's biggest IT companies, TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra, are feeling the heat as AI starts to change how they make money.
With AI handling more tasks and cutting down on manual work, these firms are seeing lower billing rates and pressure on their traditional services.
Infosys's CEO Salil Parekh summed it up: some services are seeing compression while others are growing, especially where AI tools are efficient.
CEOs warn as shares fall
Wipro's CEO echoed that demand is shifting because of AI.
HCL Tech's CEO C Vijayakumar admitted there are AI-driven productivity gains, but also warned about revenue deflation.
To adapt, Tech Mahindra said clients are questioning whether AI productivity benefits will ultimately increase.
Investors noticed all this too: shares of these IT giants dropped after earnings reports showed cautious growth forecasts and concerns about shrinking revenues as more companies adopt AI.