AI Impact: Big discounts in IT deals hurt, but tech spend set to rise, says Coforge CEO

Major clients renewing IT contracts at 30-50% lower rates, citing increasing use of artificial intelligence (AI), is deflationary for the outsourcing industry, Coforge chief executive Sudhir Singh said. At the same time, however, technology spends on transformational projects are on the rise, he told ET in an interview.

“Every time there is a disruptive technology, tech spend as an aggregate always increases,” Singh said, adding that Coforge aims to capitalise on that.

The $283-billion outsourcing industry’s clients globally are seeing a…