Hexaware Technologies CEO warns that artificial intelligence will deflate the value of routine IT work by up to 25%, signaling major price pressure across India's labor-intensive tech sector.
The head of India's Hexaware Technologies Ltd. predicts AI will significantly compress pricing for standard IT projects, reflecting the technology's growing capability to automate repetitive tasks that have long anchored the business model of Indian IT services firms.
The warning underscores how generative AI and automation tools threaten to commoditize work that IT providers have traditionally charged premium rates for. Routine coding, testing, and maintenance—core revenue drivers for companies like Hexaware—face particular pressure as AI tools become more sophisticated.
The sector has already begun adapting, with major IT services providers investing in AI capabilities and upskilling workers. However, the 25% valuation hit signals that cost compression may outpace productivity gains in near term, particularly for lower-tier IT services that depend on labor arbitrage.
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