bound at 3 per cent as AI deflation pressures margins, mid
Published on: April 29, 2026, 3:25 p.m. | Source: The Tribune
The Indian IT services sector faces a prolonged phase of slower growth and margin pressure as AI-driven budget shifts crowd out traditional services spending, with no meaningful recovery in sight for FY2027, according to a brokerage report. While total technology spending is accelerating, the incremental dollar is flowing into GPU infrastructure, foundation models and AI software rather than services, compressing the pie for Indian vendors.
