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GenAI may pile pricing pressure on support and maintenance work of IT companies

LivemintLivemint · 14d
GenAI may pile pricing pressure on support and maintenance work of IT companies

Generative AI, particularly ChatGPT, may soon have an impact on India's IT services industry as pricing pressure is expected to occur next year during contract renewals. Analysts predict that businesses involved in software app development, maintenance, and customer support will be affected. This pricing pressure is expected due to the increasing power and capabilities of generative AI. Large IT firms such as Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and Tech Mahindra, who rely heavily on applications development and management and business process outsourcing, could be affected. This could also result in a slowdown in hiring as automation reduces the need for manual labor.

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