AI Revolution in IT: Mphasis Reveals the Real Future of Tech Jobs

Mphasis Challenges AI-Driven IT Service Disruption, Calls for Adaptation

AI is Reshaping IT, But Traditional Services Aren’t Dead Yet

While artificial intelligence (AI) is revolutionizing the IT industry, Mphasis argues that reports of the traditional IT service model’s demise are exaggerated. Ravi Vasantraj, Global Delivery Head at Mphasis, believes that IT firms must adapt to new business models with shorter deal cycles, AI-driven automation, and a stronger focus on business outcomes rather than completely abandoning conventional service structures.

The conversation around AI’s impact on IT services has been heating up, especially with industry leaders like HCLTech and Infosys suggesting that traditional IT models are nearing their end. HCLTech CEO C Vijayakumar even highlighted how some teams have achieved double the revenue with half the workforce due to AI-driven efficiencies. However, Mphasis maintains that the transformation will be gradual, requiring organizations to manage change effectively.

Balancing AI Disruption with Change Management

According to Vasantraj, the key challenge isn’t just AI adoption but the complex change management process that comes with it. “Surely AI will create acceleration, and it should, but I think it’s going to be a two-speed IT organization,” he stated at the Nasscom Technology & Leadership Forum 2025.

Change management, in this context, refers to the strategic planning, implementation, and control of new technologies to minimize risks. While AI will drive efficiencies, organizations must ensure that their teams are aligned with evolving processes and client expectations.

The Shift Towards Business-Centric IT Models

Mphasis is advocating for a transition from traditional service structures to business-centric IT models that prioritize customer-specific strategies. Vasantraj emphasized that understanding customer needs remains critical in today’s rapidly changing environment.

“So you really can’t put this together in an economic model unless you understand the customer’s context. Our organizational structure is completely pivoted towards getting a ground-level understanding of client requirements and account planning,” he explained.

Rather than locking into a single AI tool or cloud platform, Mphasis is adopting a technology-agnostic approach. The company is leveraging multiple platforms like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and open-source AI solutions to create customized offerings based on client needs.

“We are pretty egoless entities. Whatever works for our clients, we do it. We are not fixed to a notion,” Vasantraj added.

The Evolution of IT Deal Structures

One of the most significant changes in IT services today is the shortening of deal cycles. Businesses are demanding faster returns on investment (RoI), pushing IT firms to deliver value more quickly.

“The way we should see it is that structuring the deal and ensuring immediate value to the customer becomes crucial—whether in terms of monitoring, customer positioning, or deal closures. This means that the entire transaction life cycle is getting shorter,” Vasantraj noted.

AI's Impact on IT Jobs: Threat or Opportunity?

With AI automating many IT functions, there are growing concerns about job losses in the sector. However, Mphasis echoes industry sentiments that AI will lead to new job opportunities rather than mass layoffs.

Vasantraj referenced the “Jevons Effect,” which suggests that as efficiency improves, overall demand increases. Applied to IT services, the global tech debt is valued at around $1.8–$2 trillion. If modernization becomes 60% cheaper due to AI, demand for IT services will likely surge rather than decline.

The Future of IT Lies in Adaptation

While AI is undeniably transforming the IT landscape, Mphasis insists that traditional services are not obsolete. Instead, the industry must adapt by integrating AI, shifting to business-driven models, and focusing on customer-centric solutions. Companies that embrace this dual-speed transition—leveraging AI while maintaining strong client relationships—will be best positioned to thrive in the evolving IT ecosystem