IT Sector

India's IT giants, including Infosys and Cognizant, are moving towards fixed-price and outcome-based contracts, driven by AI automation. This shift signifies a departure from traditional time-and-material billing, promising better profitability and efficiency.

Everyone can now use artificial intelligence (AI) to create software code, but ensuring that these systems actually work reliably is quite another matter. Indeed, this may become the next big role for the software specialists of India’s IT service firms.

Coforge, Mphasis and five similar companies saw growth moderate, but their decline in new business in FY26 was slower than that of the country’s six largest software exporters, which include the likes of Tata Consultancy Services (TCS) and Infosys.

Cognizant joins TCS and HCLTech in cutting shareholder payouts as it channels more free cash flow into AI-led acquisitions and capability building.

Artificial intelligence (AI) is reshaping not just India’s software sector but also demand for brick-and-mortar property. IT layoffs have begun to act as a drag on a market that had boomed on the back of money being made—in Bengaluru, Hyderabad and Pune, notably.

Weak FY27 revenue guidance, AI-led deflation and macro uncertainty drag Infosys shares to a 52-week low, reinforcing concerns over slowing IT sector growth.

With the turnaround journey reaching its final stretch, Tech Mahindra needs new efficiency levers beyond Project Fortius to offset rising AI investments and large-deal transition costs.