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Title: Indian IT Faces Its Kodak Moment

Link: https://it.slashdot.org/story/25/04/15/025925...

An anonymous reader shares a report: Generative AI offers remarkable
efficiency gains while presenting a profound challenge for the global IT
services industry -- a sector concentrated in India and central to its export
economy. For decades, Indian technology firms thrived by deploying their
engineering talent to serve primarily Western clients. Now they face a
critical question. Will AI's productivity dividend translate into revenue
growth? Or will fierce competition see these gains competed away through
price reductions? Industry soundings suggest the deflationary dynamic may
already be taking hold. JPMorgan's conversations with executives, deal
advisors and consultants across India's technology hubs reveal growing
concern -- AI-driven efficiencies are fuelling pricing pressures. This
threatens to constrain medium-term industry growth to a modest 4-5%, with
little prospect of acceleration into fiscal year 2026. This emerging reality
challenges the earlier narrative that AI would primarily unlock new revenue
streams.

Read more of this story at Slashdot.

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