The Indian IT sector, once the country’s most reliable growth engine, is facing a rough road ahead and will need a fundamental reset to stay competitive amid rapid technological shifts, according to Helios Capital CEO Samir Arora.
Speaking with NDTV Profit on the outlook for markets and various sectors, Arora said the next phase of growth will belong to platform-based companies, while traditional IT services firms will have to reinvent their business models to adapt to the changing global landscape.
Arora pointed out that the traditional IT services model, which was built on a labour-intensive pyramid structure is now coming under pressure due to the rise of artificial intelligence.
“Earlier, the bottom of the pyramid was doing the execution work for the middle, while the top managed client relationships. Now AI sits at the bottom — the whole structure looks more like an egg than a pyramid. That reset has to happen if IT companies are to prosper in the future,” he said.
He added that the sector could go through a challenging period before it stabilises, as automation and AI integration begin to alter cost structures, pricing models, and the nature of outsourcing contracts.
“IT will have a rough period. It needs to change its business model,” Arora noted.
