Technology · India Bureau
AI adoption could slash IT project costs by 25%, says Hexaware
Artificial intelligence is poised to significantly improve operational efficiency in IT services, potentially enabling clients to negotiate substantial discounts on project fees, according to industry executives.
LSN India ·
Hexaware Technologies CEO Srikrishna Ramakarthikeyan said the integration of AI tools could lead to cost reductions of 20-25 percent for certain IT services currently delivered to clients. The efficiency gains from AI automation are expected to reshape pricing dynamics across the information technology sector, the executive indicated.
As artificial intelligence capabilities mature and become more widely deployed, IT service providers may face pressure from customers seeking to pass through productivity improvements as price decreases. The shift reflects broader industry recognition that AI is fundamentally altering how software development, infrastructure management, and other core IT functions are executed.
Hexaware, a mid-sized Indian IT services firm, has been positioning itself to capitalize on AI-driven transformation opportunities. The company's leadership believes early adoption of these technologies will be critical as clients increasingly demand better value and faster project completion.
The cost reduction potential comes at a time when Indian IT service providers are navigating slower spending growth among multinational clients. Many firms are investing heavily in AI capabilities to maintain competitiveness and improve margins despite anticipated pricing pressures in the market.