{
  "id": 2246325,
  "title": "AI reshapes India's IT services sector contracts as clients demand more for less",
  "url": "https://urgent.news/2026/08/20/ai-reshapes-indias-it-services-sector-contracts-as-clients-demand",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-20T23:02:47.000Z",
  "source": {
    "name": "Channel News Asia",
    "slug": "channel-news-asia",
    "url": "https://www.channelnewsasia.com/business/ai-reshapes-indias-it-services-sector-contracts-clients-demand-more-less-6332256"
  },
  "original_language": "en",
  "account": "Artificial intelligence is transforming India's IT services sector, as clients demand more for less while service providers adjust their business models. Industry leaders such as Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant are shifting from billing by hours worked to performance-based fees, driven by clients seeking to cut costs and boost productivity. This change has resulted in shorter contracts, as some work is moved in-house via AI, levelling the playing field for smaller firms. Clients now expect tangible value and measurable outcomes, causing a 20% drop in the Nifty IT index, with its top 10 firms losing a combined $73 billion in market value. Pricing for contracts is now based on performance outcomes, with TCS CEO K Krithivasan reporting that 80% of finance, human resources and other business services segment contracts are performance-based, a figure that has doubled since AI became mainstream in late 2023. Other examples of AI-driven contracts include Cognizant's deal with Daimler Truck, where AI-related cost savings will be split between vendor and client. Clients anticipate more value for their money and faster delivery, leading to fierce competition among both large and mid-sized firms.",
  "summary": null,
  "key_points": [
    "AI transforming India's IT services sector",
    "Clients demand more for less, shifting to performance-based fees",
    "Contracts shortened, value and outcomes prioritized"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "AI reshapes India's IT services sector contracts as clients demand more for less",
        "url": "https://urgent.news/2026/08/20/ai-reshapes-indias-it-services-sector-contracts-as-clients-demand-2247460",
        "published": "2026-08-20T23:02:47.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}