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The Economic Times

Markets / The Economic Times

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AI to slow IT growth, not kill the model: Sandip Agarwal warns on valuations

Indian IT services firms face a growth slowdown due to Artificial Intelligence. AI tools reduce project effort, impacting billing. Large IT firms expect 5-6% revenue growth, while mid-cap firms anticipate 10-12%. Contract renewals may lead to pricing cuts. India's position as the world's software factory remains secure. Valuations may need adjustment in this new growth environment.

12 Feb 2026 4:33 pm