Report: AI could shrink Indian IT revenue 3% to 3.5%

Business May 02, 2026

AI is making things faster and smarter for Indian IT companies, but there's a catch: it's also leading to smaller deals and lower prices.
A new report says this could shrink the industry's revenue by 3% to 3.5% between FY27 and FY29, about $10 billion less each year for an industry worth $315 billion.

Infosys HCLTech TCS shift outcome-based pricing

Leaders at Infosys, HCLTech, and TCS say AI boosts productivity but puts pressure on revenues and pricing, with HCLTech's CEO estimating AI deflation at around 2% to 3% a year.
To keep up, companies are shifting from charging by hours worked to focusing on results delivered, so expect more outcome-based pricing as the industry evolves.