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AI productivity push raises pressure on Indian IT firms and threatens choppy delivery years ahead

Technology
Published on 24 April 2026
AI productivity push raises pressure on Indian IT firms and threatens choppy delivery years ahead

Bigger client promises could backfire if results slip

Indian IT services firms are moving from incremental AI experiments to bigger, client-facing commitments tied to productivity gains. The shift raises the stakes: if promised outcomes don’t materialize on time or cost, delivery could become volatile. Analysts warn the next few years may look choppy as contracts, performance expectations, and AI-driven timelines collide.

  • Indian IT firms are making larger AI-linked commitments to clients
  • Higher promises increase execution and delivery risk
  • If productivity gains lag, contract performance could become volatile
  • Next few years may be choppy for service providers
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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