New Delhi [India], March 10 (ANI): Artificial Intelligence (AI) is no longer just an emerging technology; it has become a crucial factor for the growth of the IT services sector, according to a recent report by Centrum Institutional Research.

The report highlighted that IT companies integrating AI into their operations and services are more likely to achieve higher productivity, faster growth, and access to larger transformation deals as businesses increase their AI investments.

It said 'The consensus among IT industry leaders is clear - AI is not optional, it's an imperative'.

The report mentioned that the Indian IT sector has always adapted swiftly to new technological trends, such as cloud computing and digital transformation. Now, the industry is showing similar agility in adopting AI.

With a vast talent pool, Indian IT firms are rapidly upskilling their workforce to stay ahead in the AI-driven market. Companies that establish a strong AI strategy, demonstrate early success through case studies and productivity improvements, and foster a culture of innovation are expected to emerge as long-term winners.

AI is proving to be a game-changer for IT firms in two key ways. First, it helps improve internal operations, making business processes more efficient.

Second, it serves as a major revenue stream, allowing IT companies to offer AI-driven solutions to their clients. The adoption of AI can lead to non-linear growth for IT service providers, meaning that more work can be handled without a proportional increase in manpower.

It stated 'AI can drive non-linear growth for IT services companies as more volume of work can be carried out without a commensurate increase in manpower'.

On the other hand, companies that fail to embrace AI could struggle to remain competitive. Traditional outsourcing services, which rely heavily on manual labour, may become less attractive as automated solutions offer cost-effective alternatives.

Industry experts agree that AI is not just an option but a necessity for IT firms. As global businesses accelerate their AI investments, IT companies that successfully integrate AI into their offerings are likely to lead the next wave of growth in the sector.

The report also outlined that investors should look for companies that have put in place a clear AI strategy, early results (case studies or productivity metrics) and a culture of innovation as those will likely emerge as long-term winners. (ANI)