I think GenAI is set to reshape the IT industry in ways we’ve never seen before. For smaller IT companies, it’s a game-changer. With automation taking over repetitive tasks, these firms can operate more efficiently, offer highly customized solutions, and compete with the big players without needing massive manpower or budgets. It levels the playing field, giving them a real shot at capturing market share and carving out niches where agility and innovation matter most.
For giants like TCS and Infosys, though, I see a storm brewing. These companies have relied heavily on legacy services and workforce-intensive projects for decades, but GenAI is disrupting that model. Automation will shrink the demand for traditional outsourcing, and clients may start keeping tasks in-house with the help of AI tools. Plus, with smaller players able to deliver competitive services at lower costs, the pricing power of these giants will inevitably take a hit.
In my view, the big IT firms need to act fast. They’ll have to re-skill their massive workforces to align with this AI-driven world, develop proprietary GenAI solutions to differentiate themselves, and pivot toward consulting and strategy roles where human expertise still has an edge. The future of IT is no longer just about scale—it’s about adaptability and innovation. Those who embrace this shift will thrive, and those who don’t could find themselves left behind.
Wrote my detailed thoughts here:
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