Business-as-usual may erase 30% of revenue for tech services firms: Report

Report says tech services firms risk major revenue and margin erosion if they continue with business-as-usual strategies. AI, demographic shifts and energy transition are reshaping sector's outlook

The global technology services industry faces major disruption, if it continues to operate with a business-as-usual approach. This could erode their revenue by 30 per cent or more, said a new report by Bain & Company. 

 

The report, New Growth Equation for Tech Services, further noted that across the sector, margins have fallen by more than 200 basis points, and valuations have returned to pre-pandemic levels. 

 

“Technology services firms stand at a defining moment,” said Kushal Raja, partner at Bain & Company. “AI and other structural shifts are redrawing the industry’s growth map. The next wave of winners will be