India’s software makers have been seen as laggards in artificial intelligence.
Shares of India’s vaunted IT outsourcing firms are facing a reality check, as global investors’ rush into the artificial intelligence theme starts to leave pricey old-economy tech stocks behind.
Unlike counterparts in the developed world and China, Indian software makers including leader Tata Consultancy Services Ltd. have yet to make significant advances in generative AI. That combined with a still cloudy outlook for client spending may soon leave them looking like the tech bets of yesterday.
“Traditional software companies’ earnings and valuations are at risk because their business models are not evolving with the times,” said Deven Choksey, managing director of DRChoksey FinServ Pvt.
A BSE Ltd. gauge of Indian software stocks has recently fallen through key support levels into a technical correction. Yet…
