AI to redefine IT business models, Jefferies flags structural risks and slower growth

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Jefferies in its latest report has revised downward its earnings estimates for the IT sector, citing structural changes driven by artificial intelligence (AI), which may significantly alter the traditional business mix of IT companies.

According to the report, AI is expected to structurally shift IT companies’ business mix towards consulting and implementation services while shrinking the share of managed services.

This transition could increase cyclicality in revenue growth and require changes in talent strategies and operating models, thereby adding…



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AI to redefine IT business models, Jefferies flags structural risks and slower growth



Jefferies in its latest report has revised downward its earnings estimates for the IT sector, citing structural changes driven by artificial intelligence (AI), which may significantly alter the traditional business mix of IT companies.

According to the report, AI is expected to structurally shift IT companies’ business mix towards consulting and implementation services while shrinking the share of managed services.

This transition could increase cyclicality in revenue growth and require changes in talent strategies and operating models, thereby adding…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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