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IT cos on alert as hyperscalers eye a slice of enterprise spends
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The rise in artificial intelligence investments by hyperscalers is targeting a large share of enterprise IT spending, potentially undercutting the traditional software services outsourcing industry in the near term.
“The gross impact of AI on IT services will be a deflation of 8-10% (by FY2027), by our estimates,” HSBC Global Investment Research said in a recent report. It estimates this to be realised over three-four years as deals come up for renewal, and projects the annual impact to be as high as 3-4% during 2025-27.
IT companies have so far…
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