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

Global Leaders Transform Outsourcing Strategies in the Age of AI

As artificial intelligence continues to revolutionize industries worldwide, major multinational corporations are reevaluating their partnerships with Indian IT service providers. Traditionally, many of these collaborations have relied on fixed-price contracts, offering stability and clear budgets. However, the rapid adoption of AI tools and solutions is prompting a significant shift in how these deals are structured.

Leading global companies are now exploring more flexible, dynamic engagement models such as time and materials agreements. These contracts are based on real-time hours and effort invested, allowing for greater agility and responsiveness in project execution. This evolution underscores AI’s profound impact on India’s $280 billion IT services sector, moving the focus away from manual labor toward accelerated delivery and innovation.

The transition reflects a broader industry trend: corporations recognizing that leveraging AI not only reduces reliance on human resources but also accelerates project timelines. As a result, the traditional fixed-price approach is increasingly being challenged, paving the way for more adaptable and efficient outsourcing arrangements in the digital age.

Stay tuned to see how this transformation continues to shape global IT partnerships and what it means for the future of outsourcing in India.