Investors may favor Indian IT services firms that can win enterprise AI work with less capital than infrastructure builders, Anand Rathi said in a view reported by The Economic Times.
The Economic Times reported that the brokerage sees a divide between companies providing services for corporate AI adoption and businesses committing substantial sums to build infrastructure. In Anand Rathi’s assessment, investors are examining whether AI spending produces cash and returns. They may also scrutinize how companies finance expansion, convert earnings into cash and earn returns on new investment.
Potential assignments for service providers range from updating older technology systems and connecting corporate data to securing AI deployments. The list also includes overseeing AI agents and operating business processes that use AI. Anand Rathi says sector knowledge and dependable delivery will matter in winning that work.
The opportunity has not erased weakness elsewhere. The Economic Times said Anand Rathi believes AI projects have yet to compensate for slower demand for optional technology work. Demand from financial services has held up better, while a wider rebound depends on companies increasing technology budgets. The brokerage argues that investors will need to distinguish which providers can capture work, rather than count on a sector-wide upswing.
Broader business results offer context on why adoption does not guarantee payback, though the study does not identify which IT suppliers may benefit. A report published Oct. 13 by Wharton Human-AI Research and GBK Collective, The Adaptive Advantage: Who’s Winning With AI and How, examined enterprise leaders’ accounts of their departments.
Among leaders whose departments met all three components of transformational success, 67% reported strongly positive returns on investment. The share was 19% among leaders whose departments did not meet all three components. The figures reflect leaders’ assessments of their departments, not an evaluation of IT vendors.
