TCS, Persistent CEOs Confirm Shift to Outcome-Based Pricing Amid AI Productivity Gains

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India's top IT firms are overhauling their decades-old billing model as AI reshapes how services are priced and delivered. In August 2026, TCS CEO K Krithivasan told Reuters that roughly 80% of the company's finance, HR, and business-services contracts are now priced on outcomes rather than hours worked. Persistent Systems CEO Sandeep Kalra separately confirmed that clients are demanding the same work for 25–30% less, while expecting faster delivery. TCS attributed the shift partly to AI-driven productivity gains of 10–15%, which it passes to clients in phases to protect its own margins. Cognizant also signalled the same direction, stating that clients now expect measurable business results rather than billable effort.

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