IT sector reset sees focus sharpen on AI-led delivery

MOVE AWAY FROM HEADCOUNT-LED MODELS TO OUTCOME-DRIVEN ONES

- POULOMI CHATTERJEE

INDIAN IT FIRMS' transition from manpower-led outsourcing to AI-native, outcomebased delivery is becoming more explicit, with top-tier firms setting the tone and mid-sized players using acquisitions to accelerate the shift. Analysts said the change reflects a broader reset underway across the sector as revenue growth moderates and clients demand measurable productivity gains rather than incremental headcount.

That shift is most clearly visible in the latest wave of consolidation. Coforge's $2.35-billion all-stock acquisition of USbased AI engineering firm Encora, late last week, has emerged as the most forceful mid-tier endorsement of this new model. The transaction lifts Coforge into the $2.5-billion revenue bracket and significantly alters its revenue mix, with close to $2 billion now coming from AI-led digital engineering and product services.