Brokerage: AI spending shift squeezes India's IT growth until FY2027
NewsBytes | April 30, 2026 7:39 AM CST
AI price cuts 3.5% hurt margins
AI-driven price drops, about 3.5%, are making contract renewals tougher and cutting into profit margins.
As top players like TCS and Tech Mahindra compete for similar deals, the market isn't growing fast enough to balance out all this new AI spending.
Still, there's hope: the report suggests these challenges are part of a cycle, and midtier firms (like PSYS) might find fresh opportunities in areas like AI governance.
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