2/5/2026, 11:40:02 am

Indian IT sector may face $10 Billion revenue hit from AI deflation

Indian IT services companies face deflationary pressure due to AI-driven efficiency gains, with estimated revenues potentially shaved off by nearly $10 billion, or 3-3.5% per year. Companies see shrinking deal sizes, pricing pressure, and its impact on revenues. Despite strong deal wins, revenue growth is lagging for Infosys, TCS, and HCLTech.