AI boosts IT services industry, redefines global tech roles: report
NEW YORK, UNITED STATES — Artificial intelligence (AI) is reshaping the global IT services industry, creating new opportunities rather than threatening established players, according to a recent UBS Evidence Lab report as reported by Vietnam.vn.
The rise of generative AI (GenAI) and agentic AI is driving businesses to increase technology budgets and shift investment toward outsourcing, opening a new growth cycle for IT service providers worldwide.
AI spending drives IT outsourcing growth
The UBS survey of over 100 chief technology officers (CTOs) and chief information officer (CIOs) found that 82% of businesses plan to increase technology budgets this year, with an average rise of 6%.
Spending on GenAI alone is projected to grow by 12%, while investments in AI readiness—such as cloud migration, data cleaning, and modernization of legacy systems—are growing by 8%.
“Businesses outside the IT industry are gradually reducing investment in internal IT resources, shifting those costs toward outsourcing IT services, aiming to leverage the flexible cost structures and high expertise of IT service providers,” the report said.
Spending on third-party IT outsourcing is expected to increase by 5%, while internal IT spending is projected to fall by 7%. The trend underscores the growing demand for IT firms to deliver specialized AI solutions, including AI governance and task coordination, alongside system integration.
Traditional models shift toward ai-driven services
AI is also transforming the way IT services are delivered. Time- and material-based models for repetitive tasks—such as business process outsourcing (BPO), testing, and basic programming—are increasingly giving way to performance-based pricing, reflecting clients’ demand for measurable AI capabilities.
The report warned that only providers demonstrating strong AI expertise and operational effectiveness will survive.
IT companies are retraining staff for higher-value roles, including AI architects and systems coordinators.
Gartner predicts that by 2028, demand for AI engineers will surpass traditional programmers as enterprises focus on coordinating AI systems and managing multi-agent operations.
The report noted that companies like Tata Consultancy Services ($1.5–$1.8 billion in AI revenue) and Infosys (5.5% of total revenue from AI) are already capitalizing on these shifts.
AI elevates IT services, transforming the outsourcing landscape
AI is redefining the value proposition for IT services. While cost efficiency once dominated competitive advantage, value now lies in consulting, solution design, AI orchestration, and system integration.
“AI is not replacing or undermining the IT services industry; on the contrary, it is elevating the industry to a higher value level,” the report concluded.
As businesses seek partners capable of integrating AI into complex systems and ensuring operational stability, outsourcing providers are increasingly indispensable.
The report highlights a clear divide: firms that adapt quickly to AI-driven opportunities will secure sustainable growth, while those relying on traditional labor-based models face mounting pressure.
