The tech sector should reinvent work to harness the power of AI

Instead of infusing operations with AI, businesses should rebuild delivery processes at the task level

- NITIN BHATT & NEHA SHARMA

India's infotech services industry finds itself in a moment of reckoning.

The latest quarterly earnings from leading players tell a consistent story: of muted revenue growth and stubbornly flat margins accompanied by large deal wins. Clients are demanding up to 30-40% fee discounts, arguing that efficiency gains from AI should directly flow into lower delivery costs. Most service providers have doubled down on AI adoption but are finding that it is yet to translate into value differentiation that can command premium pricing. The paradox is stark. The sector is working harder and transforming faster. Yet, it is unable to accelerate growth.

Across boardrooms, the same questions are being asked: "Where is the value of AI? Why aren't productivity gains showing up in company margins?" The problem isn't technology; it's the legacy work architecture within organizations. Al has been infused into existing delivery models without re-imagining the work itself. Middle managers are caught defending traditional roles and workflows remain process-bound instead of outcome-oriented, even as the workforce struggles to reskill fast enough. Until firms redesign work from first principles by rethinking activities, roles, metrics, interactions and accountability between humans and Al agents, the gap between Al's promise and its impact will continue to widen.