OpenAI's GPT-5 release raises revenue risk for Indian IT firms
OpenAI's GPT-5 launch poses a threat to the Indian IT services industry, potentially deflating revenues by 2-3% for several years. While boosting productivity and enabling new AI use cases, GPT-5's advancements in coding and reduced hallucination rates could lead clients to demand lower pricing. IT firms must adapt to outcome-based models and higher-value services to mitigate margin compression.
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