The slowdown in India’s top IT services companies is no longer easy to explain away as a macro story. According to Nirav Sheth, CEO – Institutional Equities at Emkay Global, two structural shifts — the rise of Global Capability Centers (GCCs) and the rapid adoption of Artificial Intelligence (AI) — are beginning to reshape the industry dynamics for domestic IT firms such as Tata Consultancy Services (TCS), Infosys and HCL Technologies. Advertisement

Sheth points out that GCCs are increasingly competing head-on with IT vendors. Reports suggest that nearly 65 per cent of enterprises are shifting at least 10 per cent of vendor work into GCCs, particularly in high-value functions such as R&D, digital transformation and AI-driven projects. In his view, it is hard to ignore the fact that GCC r

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