At the core of this transition are two crucial paradoxes. “The value of code has never been greater… yet, the value of coding — the process of creating that code — is diminishing,” he described, referring to it as a “paradox of value.” Simultaneously, “an abundance of code… does not inherently result in dependable software,” leading to new challenges regarding security, compliance, and integration.
To adapt to this shift, companies must reevaluate traditional frameworks based on headcount and effort. D’Souza highlighted a transition towards “effort-agnostic commercial models,” emphasizing “impact over headcount,” the development of proprietary intellectual property, and a reevaluation of talent structures. However, he pointed out that “input pricing will still be relevant for some tasks, output pricing for others, and a portion will be outcome-based.”
Srikanth Velamakanni, Co-founder of Fractal Analytics, asserted, “there’s no denying this is a monumental revolution,” but advised that short-term pressures are surfacing. “A $100 million project from three years ago could now be bid at $70–80 million, or even $50 million,” he added, noting that “growth is currently constrained” and the upcoming “12–18 months may be similar or even worse.”
Both executives stressed that the disruption offers a substantial long-term opportunity, even as the industry maneuvers through a phase of contraction before AI-driven demand starts to increase.
Also Read: AI-led pricing pressure to keep IT growth weak; worst yet to come: Fractal Analytics’ Velamakanni
