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NASSCOM Report Insights: AI, Beyond the Myth & the Hype

November 4, 2016

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We shared a few insights from our report on Artificial Intelligence  in this post some days back. In this post, we will deep dive into implications of AI for IT-BPM services.

It’s estimated that AI will deliver over USD 70 billion in net productivity-led gains for IT-BPM service providers by 2020. 80 per cent of the USD 70 billion productivity gains will come from infrastructure services and business process management services.

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This huge productivity improvement potential will entail moving away from workforce indexed revenue models to output driven models. Given the AI-enabled possibilities, customers are increasingly demanding more for less. IS and BPM services will face up to 10-15 per cent price erosion as their delivery model will be completely re-engineered. AI induced price erosion is expected to produce pass through benefits of over USD100 billion for the end consumer of IT and BPM services; with the rest USD 70+ billion accruing to their bottom-line.

Here is an example of how AI will affect job cuts. AI will significantly automate end to end Order to Cash process flow.

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Next evolution of IT will be led by AI re-engineering and re-imagining the IT Industry

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Now, this is interesting. Here are the AI Platforms of top Indian IT service providers.

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The whole report will be released on the Community soon.


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