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India’s IT Services Industry Shifts From Cost to Intelligence Arbitrage
India’s technology-services industry has traditionally competed by offering lower costs.
Rahul Singh said it could instead compete by offering smart ideas and AI expertise.
Companies are also trying to be judged by the results they create, not just by the technology they deliver.
This change may take time because businesses must adjust prices and rebuild client trust.
Singh said job growth could be slower, but the work may become more valuable and advanced.
Professor V Kamakoti named AI auditors, AI integrators and data experts as important jobs.
Nitin Bawankule said AI can make people smarter by giving them easier access to information.
He added that people still need to ask good questions, check answers and use their own judgment.
HCL Technologies COO Rahul Singh said India’s IT services industry will shift from cost arbitrage to intelligence arbitrage.
Singh said companies are moving toward outcome-based services rather than simply producing technology.
He said AI may moderate job-growth rates while increasing the value and quality of engineering work.
IIT Madras Director V Kamakoti identified AI auditors, AI integrators and interdisciplinary data analytics experts as important future roles.
OpenAI’s Nitin Bawankule said AI will increase access to intelligence while requiring stronger critical thinking and judgment.
- Who
- Rahul Singh of HCL Technologies, Professor V Kamakoti of IIT Madras, and Nitin Bawankule of OpenAI discussed the issue.
- What
- India’s IT services industry is expected to move from cost arbitrage toward intelligence arbitrage as AI transforms the sector.
- Where
- The discussion took place at the SBI Banking and Economics Conclave.
- When
- The discussion was reported on September 24, 2026.
- Why
- The shift is being driven by the AI transformation and the industry’s move toward higher-value, outcome-based work.
Key facts
- Industry
- India’s IT services industry
- Proposed shift
- From cost arbitrage to intelligence arbitrage
- Industry model
- A move toward outcome-based services
- Employment outlook
- Potentially slower numerical growth but higher-value engineering work
- Future roles
- AI auditors, AI integrators and interdisciplinary data analytics experts
- Human skills
- Critical thinking, evaluation of outputs and judgment
- Discussion date
- September 24, 2026
Quotes
Nitin Bawankule
Head of Enterprise at OpenAI
“While the numerics may be different, may not be high growth rates, but the value addition will be much higher. The industry is moving to more higher quality of engineering work to be done. We are now developing a group who can create AI and who can use AI. Our students are very bright and sharp”
thehindubusinessline.com
“The Indian IT services industry has long been recognized for cost arbitrage and audit. It will shift to an intelligence arbitrage. It will be a momentous occasion for the country to catapult from being seen as a cost provider to an intelligence provider”
thehindubusinessline.com
Sources
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