Aug. 14 at 5:08 AM
$INFY $TCS.NSE
$CTSH $ACN Short-Term Business Model Risks
Revenue compression – Since much of the IT services pricing model is “time & materials” or “headcount-based,” AI efficiency can mean fewer billable people.
Pricing pressure – Clients may demand cost savings if automation replaces manual work.
Talent reskilling needs – Legacy skillsets in COBOL, manual testing, or basic BI reporting may be less relevant.
Long-Term Strategic Opportunities
If these firms own AI intellectual property (prebuilt industry models, automation platforms), they can shift from selling labor or headcounts to selling high-margin software & AI solutions.
AI could allow them to serve more clients with fewer people, improving profitability — if they move fast enough.
