The artificial intelligence threat to software companies is no longer a uniform sell signal. Instead, it is creating a widening divide between SaaS platforms and the system integrators that build and implement them in a shift that could determine the next winners in India’s IT sector.
SaaS companies are gaining market share over IT services in the AI era, according to global brokerage firm CLSA. While most SaaS companies have raised their guidance and delivered more stable earnings growth so far this year, the majority of Indian IT service companies have cut guidance.
