IT Sector Outlook: AI Transformation, TCS Growth Signals And Stock Market Challenges Explained

The recent selloff in IT stocks has raised concerns among investors, but experts believe the sector is going through a transformation rather than a long-term slowdown. Indian IT companies are increasingly adopting AI, automation, data centers, and outcome-based business models to drive future growth. During the discussion, Deven Choksey, MD, DR Choksey FinServ Private, said that the ongoing shift from time-and-effort billing models to outcome-based revenue models could create significant opportunities for technology firms. He noted that while large-cap IT companies may continue to deliver modest growth, select mid-cap players could outperform. Choksey specifically highlighted Tata Technologies, Tata Elxsi, and LTTS as companies with strong growth visibility across engineering, automotive, aviation, and industrial automation segments.