Embracing AI for the Future of IT Services
The rapid advancement of artificial intelligence (AI) has sparked discussions about the decline of traditional IT services. However, Mphasis argues that rather than becoming obsolete, IT firms must evolve and adapt to AI-driven automation, shorter deal cycles, and a business outcome-focused approach.
The Changing Landscape of IT Services
While industry leaders at HCLTech and Infosys suggest the traditional IT service model is fading, Mphasis’ Global Delivery Head, Ravi Vasantraj, believes the narrative is more nuanced. Speaking at the Nasscom Technology & Leadership Forum 2025, he emphasized that transformation in IT services comes with a complex change management process. AI will accelerate operations, but organizations must develop a dual-speed IT structure to integrate new technologies while maintaining business continuity.
Customer-Centric AI Transformation
Mphasis underscores the importance of understanding customer needs before implementing AI-driven solutions. According to Vasantraj, companies cannot rely solely on economic models without integrating customer-specific strategies.
“So you really can’t start putting this together in an economic model unless you’re able to start getting the context in place. Our organizational structure is completely focused on understanding customers at a granular level, ensuring tailored AI implementations,” he stated.
Technology-Agnostic Approach
Rather than committing to a single AI tool or cloud provider, Mphasis follows a technology-agnostic strategy, leveraging platforms like Amazon Web Services, Microsoft Azure, Google Cloud, and open-source AI. This ensures businesses receive customized solutions that align with their unique needs.
“We are pretty egoless entities. Whatever works for our clients, we would do it. We are not fixed to a notion,” Vasantraj added.
Evolving IT Deal Structures
With macroeconomic challenges pressuring IT firms, Mphasis has observed a shift towards shorter business cycles and increased demand for faster return on investment (RoI). Clients now expect immediate value, accelerating the transaction lifecycle and necessitating innovative deal structuring.
“The way we should see it is that structuring the deal and looking at how you start getting immediate value to the customer becomes important—whether through monitoring, customer positioning, or deal closures,” Vasantraj explained.
AI and the Future of IT Jobs
The rise of AI has raised concerns about job displacement in IT. However, Mphasis aligns with the perspective that AI will create new opportunities rather than eliminate roles. Vasantraj references the “Jevons Effect,” which states that as efficiency increases, overall demand also rises.
With global tech debt estimated between $1.8–$2 trillion, AI-driven modernization—if made 60% cheaper—could fuel significant growth in demand, leading to job creation rather than loss.
Conclusion
Mphasis remains optimistic about AI’s role in IT services. By embracing AI-driven automation, focusing on customer-centric strategies, and maintaining a flexible technology approach, the company believes IT firms can thrive in this evolving landscape.
