Citigroup said that although the sector rose on Friday, driven by SEFTSE's earnings report, the outlook for Indian IT service companies is still grim due to the impact of artificial intelligence and increased competition. Citibank analyst Surendra Goyal wrote in the research report: “From a medium-term perspective, the impact of artificial intelligence is real, and the pace of influence will be influenced by multiple factors. The outlook for the IT services industry remains difficult, and we will maintain a cautious attitude.” The bank expects short-term IT services industry revenue to maintain low single-digit endogenous growth. Industry growth continues to be suppressed by factors such as fierce competition, increased productivity brought about by artificial intelligence, and accelerated expansion of global competency centers. “There is an opinion in the market that customers tend to use artificial intelligence to build their own systems, which is beneficial to the service business rather than the software business; however, up to now, we have not seen much relevant evidence.”

Citigroup said that although the sector rose on Friday, driven by SEFTSE's earnings report, the outlook for Indian IT service companies is still grim due to the impact of artificial intelligence and increased competition. Citibank analyst Surendra Goyal wrote in the research report: “From a medium-term perspective, the impact of artificial intelligence is real, and the pace of influence will be influenced by multiple factors. The outlook for the IT services industry remains difficult, and we will maintain a cautious attitude.” The bank expects short-term IT services industry revenue to maintain low single-digit endogenous growth. Industry growth continues to be suppressed by factors such as fierce competition, increased productivity brought about by artificial intelligence, and accelerated expansion of global competency centers. “There is an opinion in the market that customers tend to use artificial intelligence to build their own systems, which is beneficial to the service business rather than the software business; however, up to now, we have not seen much relevant evidence.”