SynopsisIndian IT service providers are increasingly using structured deals that combine acquisitions with long-term service contracts. Experts say AI-driven outsourcing changes, clients exiting captive operations and pressure on traditional growth are driving the trend. While these deals offer committed revenue, talent and expertise, AI could still reduce revenue over time.Indian software service providers are witnessing a resurgence of structured deals– one where acquisitions and service contracts are bundled together– as artificial intelligence changes the economics of outsourcing and clients look to exit captive operations, industry experts said.Tata Consultancy Services’ $1.4-billion deal with German automaker Porsche, announced on Monday, with the $373 billion purchase of its IT arm, MHP, is the latestNow Playing
IT firms turn to bundled deals to weather AI deflation - The Economic Times
Indian IT service providers are increasingly using structured deals that combine acquisitions with long-term service contracts. Experts say AI-driven outsourcing changes, clients exiting captive operations and pressure on traditional growth are driving the trend. While these deals offer committed revenue, talent and expertise, AI could still reduce revenue over time.
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