World’s top companies are realizing AI benefits. That’s changing the way they engage Indian IT firms

Global Leaders Transform Outsourcing Strategy in Response to AI Advancements

As leading international corporations increasingly adopt artificial intelligence, their approach toward partnering with Indian IT service providers is experiencing a significant shift. Traditionally, many large firms relied on fixed-price contracts to ensure predictable costs and deliverables. However, the rising influence of AI technologies is prompting a reevaluation of this model.

The disruptive potential of AI is impacting India’s $280 billion IT industry by reducing dependency on human labor and accelerating project timelines. This evolution is encouraging Fortune 500 companies to explore alternative contractual arrangements, such as time and material agreements, which are based on actual hours worked and resources utilized.

This transition reflects a broader strategic move to embrace the efficiencies offered by AI, allowing firms to adapt their outsourcing relationships in a manner that aligns with the fast-paced, technology-driven landscape of today’s global business environment.