DATANEWS

AI Is Rewriting the Economics of India’s $315 Billion IT Outsourcing Industry

Reuters · 2026-09-03

Indian IT-services companies are moving away from hours-worked billing toward outcome-based contracts as AI automates more coding and support work.

Why it matters: AI is weakening the historical relationship between outsourcing headcount and revenue, forcing a major business-model reset.

Indian IT-services companies are moving away from hours-worked billing toward outcome-based contracts as AI automates more coding and support work.

AI is weakening the historical relationship between outsourcing headcount and revenue, forcing a major business-model reset.

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