Return of uncertainty in the demand environment and increasing adoption of artificial intelligence by clients are squeezing the pricing power of India’s $280 billion information technology sector, where many deal renewals and new signings are happening at a discount to existing rates, according to industry watchers.
Clients maintaining moderation in their IT budgets while focusing on cost efficiency is impacting the pricing of deals, said analysts. With competition too intensifying, major IT service providers are also renegotiating contracts,…