Mahendra Dhillon, chief digital, AI & growth advisor at MOAR Advisory, a Bengaluru-based consulting firm, said this is not an abstract competitive threat but one that directly challenges the engagement model that built the Indian IT industry. 

The new model: From manpower to machine-led execution 

Traditional IT services relied heavily on large teams and long project cycles. The new AI-native model flips that equation. 

Dhillon explains this stark contrast: “The second model costs the client less. It costs the vendor fewer people. And it leaves almost no room for the 180-person team that used to do this work.” 

Instead of hundreds of engineers working over years, a small team can now deploy AI systems that automate a majority of tasks. This model is faster, cheaper, and outcome-driven rather than effort-driven.