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Economy

AI transforms IT service contracts in India as client demands shift

Artificial intelligence is reshaping IT service contracts in India, with clients increasingly prioritizing performance-based outcomes over traditional pricing models.

The Business Standard ยท 21 August 2026, 9:35 AM

The IT services sector in India is undergoing a significant transformation driven by the integration of artificial intelligence. According to The Business Standard, the nature of service contracts is evolving as clients demand greater value and efficiency. There is a growing trend where contract pricing is increasingly dictated by specific performance outcomes rather than conventional metrics.