Mumbai, June 12: A recent note by Kotak Institutional Equities has highlighted that rapid advances in artificial intelligence (AI) could increase disruption risks for IT services companies, potentially reshaping traditional business models in the sector.
According to the analysis, accelerating AI adoption is expected to transform client expectations, delivery structures, and pricing models across global IT outsourcing and services markets. While AI presents new efficiency opportunities, it may also pressure conventional revenue streams that rely heavily on manpower-led service delivery.
The report suggests that IT services firms could face increased competition from automation-led platforms and AI-native solutions, which may reduce dependence on large-scale human resources in certain operational areas.
At the same time, Kotak Institutional Equities noted that companies able to adapt quickly—by integrating AI into core service offerings and reshaping delivery models—may be better positioned to maintain competitiveness in a changing global technology landscape.
The findings underscore a broader industry transition, where AI is expected to act as both an enabler of productivity and a source of structural disruption.