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

Global Leaders Harness AI to Transform Engagement with Indian IT Service Providers

The rise of artificial intelligence (AI) is fundamentally revolutionizing how multinational corporations collaborate with Indian IT giants. As AI continues to demonstrate its power to streamline operations and enhance efficiency, some of the world’s largest companies are reevaluating their longstanding outsourcing strategies.

Traditionally, fixed-price contracts have been the norm in IT outsourcing, providing predictability and fixed costs for projects. However, the latest industry shifts indicate a move toward more flexible arrangements—namely, time-and-materials contracts that are based on the actual hours worked and resources utilized. This transition is driven by AI’s transformative impact, which allows for quicker project turnarounds and reduced reliance on manual labor.

Fortune 500 companies, recognizing the benefits of AI—such as faster development cycles and cost efficiencies—are increasingly considering these flexible contractual models before committing to conventional fixed-price agreements. Such strategic changes are reflective of broader industry trends, highlighting AI’s pivotal role in redefining the future of global IT partnerships.

As AI continues to evolve and deliver tangible business benefits, Indian IT firms are likely to adapt their service offerings and engagement models, creating new opportunities for collaboration in this dynamic landscape.