New Delhi [India]: Artificial Intelligence (AI) has evolved from being an emerging technology to a vital driver of growth for the IT services sector, according to a recent report by Centrum Institutional Research.
The report emphasized that IT companies incorporating AI into their operations and services are more likely to experience higher productivity, faster growth, and secure larger transformation deals as businesses ramp up their AI investments.
“The consensus among IT industry leaders is clear – AI is not optional, it’s an imperative,” the report stated.
It also highlighted the Indian IT sector’s ability to adapt quickly to new technological trends, such as cloud computing and digital transformation. Now, the industry is demonstrating similar agility in embracing AI.
With a large talent pool, Indian IT firms are rapidly upskilling their workforce to stay competitive in the AI-driven market. Companies that develop a robust AI strategy, showcase early successes through case studies and productivity gains, and promote a culture of innovation are expected to emerge as long-term leaders.
AI is proving to be a game-changer for IT companies in two significant ways. First, it enhances internal operations, making business processes more efficient. Second, it serves as a substantial revenue source by enabling IT firms to offer AI-driven solutions to their clients.
The report stated, “AI can drive non-linear growth for IT services companies as more volume of work can be carried out without a commensurate increase in manpower.” This implies that IT service providers can handle a larger workload without proportionally increasing their workforce.
However, companies that fail to adopt AI risk losing their competitive edge. Traditional outsourcing services, which depend heavily on manual labor, may become less appealing as automated solutions offer more cost-effective alternatives.
Industry experts agree that AI is not just an option but a necessity for IT firms. As global businesses accelerate their AI investments, IT companies that successfully integrate AI into their services are likely to lead the next wave of growth in the sector.
The report also advised investors to focus on companies that have a clear AI strategy, early positive results in the form of case studies or productivity metrics, and a strong culture of innovation, as these are expected to be the long-term winners.