Hexaware Technologies CEO N. Raghuram says AI is likely to reduce the value—and potentially the fees—of some IT services by as much as 25%. He links the shift to the way AI can improve efficiency for routine tasks, changing how buyers evaluate and pay for work.
The comments focus on a sector that has historically relied heavily on labor for delivery of IT projects, where standard processes and repetitive activities make cost comparisons more straightforward. One outlet reports that customers may seek 20%–25% lower fees for work Hexaware currently performs, while another frames the estimate as a maximum potential decline in pricing for routine IT efforts. Both accounts present the same core claim: that AI-driven automation and productivity pressures could transfer value from service providers to customers in the form of lower costs.
Neither source provides specific contract changes or quantified impacts for Hexaware’s current deals, but both depict the outlook as industry-wide and tied to pricing dynamics for routine, labor-intensive work.
