Hexaware CEO Srikrishna Ramakarthikeyan expects AI automation to reduce standard IT service fees by 25%. To counter this, the company is moving toward fixed-price contracts and AI-platform models. While the firm targets $3 billion in revenue by 2029, investors are tracking recent guidance adjustments and the company's efforts to move past post-IPO price weakness.
Hexaware Technologies is preparing for a significant change in how IT services are priced as artificial intelligence reshapes the industry. CEO Srikrishna Ramakarthikeyan recently highlighted that AI automation will likely lead to a 25% drop in fees for routine, repetitive IT projects. As AI takes over standard tasks, the traditional industry model of billing clients based on the number of hours worked is becoming less effective.
To manage this transition, Hexaware is shifting its business model toward fixed-price and platform-based contracts. By moving away from time-based billing, the company aims to get paid for the specific results it delivers. This strategic pivot is already underway, with the company reporting that over 50% of its current revenue is derived from AI-infused services. Additionally, the firm has introduced 'Zerovity,' an AI delivery layer designed to consolidate various service capabilities and streamline operations for its clients.
Hexaware has set an ambitious target to reach $3 billion in revenue by 2029, banking on the growing demand for its AI-native solutions. However, the path to this growth has seen some recent challenges. In its latest outlook, the company trimmed its full-year 2026 revenue growth guidance to a range of 6% to 7%, down from the previous expectation of 7.6%. Management attributed this adjustment to delays in the ramp-up of certain deals, which highlights the risk of project execution timing.
Investors have been paying close attention to the company’s stock performance, which has faced pressure since its 2025 IPO. Following a recent 'AI Day' presentation on August 21, 2026, where the company outlined its strategy to capture a $300 billion addressable market, the share price saw a positive move of 6% to 8%. While this suggests some renewed investor interest, the company must now prove it can convert these large market opportunities into consistent revenue. For the coming quarters, investors will likely track whether the company can successfully ramp up its new deals, manage the transition to fixed-price models without hurting margins, and overcome the current deal-flow delays.