GenAI disrupts software ADM market, 10-15% of IT services revenue at risk

While revenue growth from AI is still marginal, the larger question is how the industry can reinvent itself when one of its largest revenue pools becomes less labour-intensive

As the debate continues over the revenue-generating potential of generative AI (GenAI), one thing is becoming increasingly clear: its impact on the Software Development Life Cycle (SDLC) — and by extension, Application Development and Maintenance (ADM) — is already being felt in measurable ways.

 

According to a report from Motilal Oswal Financial Services, ADM, which makes up an estimated 35–45 per cent of the IT services industry’s revenue, is emerging as ground zero for GenAI’s most immediate and tangible productivity gains.

 

For IT services firms, this translates to a structural challenge. "Our research suggests an approximately 40 per cent productivity