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AI is flipping India’s IT giants playbook as VC backed rivals turn services into software
Technology
Published on 24 April 2026
Startups now sell software built on AI not labor
AI is reshaping India’s technology landscape, eroding one of IT services’ biggest advantages: scalability over startups. New VC-backed firms are moving beyond “custom coding” to AI-heavy products that package services as software, squeezing margins and forcing incumbents to adapt their offerings, delivery models, and competitive strategy.
- AI-first startups are shifting from services to packaged software
- VC funding is accelerating product development and faster scaling
- Incumbent IT firms face margin pressure and weaker differentiation
- The tech map is redrawing around AI tools and platforms
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times