On Monday, India's Nifty IT Index fell by up to 1.74%, partly taking back the 3.5% increase driven by Salesforce last Friday. Citigroup said that against the backdrop of the impact of artificial intelligence and increased competition, the prospects for software service companies are still difficult. “In the medium term, the impact of artificial intelligence is real, but the pace of development may vary due to various factors,” Citi analyst Surendra Goyal wrote in a report. “The outlook for the IT services industry remains grim, and we should be cautious.” He expects the IT service industry's organic revenue growth rate to remain low in single digits for some time to come. Growth continues to be affected by factors such as fierce competition, AI-driven productivity increases, and faster growth in the GCC region. “One trend in IT services is that customers choose to use artificial intelligence for development, preferring services over software; yet, we haven't seen much evidence of this.” Infosys shares fell by up to 2.4%; HCL Technologies Ltd fell 1.4%, and Tata Consultancy Services fell 1.1%.

On Monday, India's Nifty IT Index fell by up to 1.74%, partly taking back the 3.5% increase driven by Salesforce last Friday. Citigroup said that against the backdrop of the impact of artificial intelligence and increased competition, the prospects for software service companies are still difficult. “In the medium term, the impact of artificial intelligence is real, but the pace of development may vary due to various factors,” Citi analyst Surendra Goyal wrote in a report. “The outlook for the IT services industry remains grim, and we should be cautious.” He expects the IT service industry's organic revenue growth rate to remain low in single digits for some time to come. Growth continues to be affected by factors such as fierce competition, AI-driven productivity increases, and faster growth in the GCC region. “One trend in IT services is that customers choose to use artificial intelligence for development, preferring services over software; yet, we haven't seen much evidence of this.” Infosys shares fell by up to 2.4%; HCL Technologies Ltd fell 1.4%, and Tata Consultancy Services fell 1.1%.