HCLTech says AI causes 2% to 3% annual deal deflation
Business
HCLTech says AI is causing 2% to 3% annual deflation in deal values across its traditional services business as AI makes things more efficient and cheaper.
CEO C Vijayakumar shared that deal sizes are shrinking, dropping from $100 million to about $80 million, all thanks to the productivity boost from AI.
HCLTech doubles down on AI services
Instead of just taking the hit, HCLTech is doubling down on AI-powered services like data, cloud, and cybersecurity.
Its Advanced AI offerings now bring in around $620 million a year and are growing fast, expected to jump 25% to 30% annually.
The company's also moving to outcome-based billing, letting clients pay for real results as they keep adapting to the new AI-driven landscape.