India's IT services industry heads into the September-quarter (Q2) earnings season with a problem that goes well beyond another weak quarter. The country's roughly $315-billion technology industry is still winning large contracts and global companies continue to spend on technology but the revenue generated from each unit of work is coming under pressure. AI is making software and technology work more productive but an increasing share of that productivity gain is flowing back to clients through lower prices. The Q2 IT sector results might offer an early glimpse of a deeper shift in the economics of India's biggest export industry which also has been a strong jobs engine for India.
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