- Published on August 25, 2025
- In IT Services
GPT-5 Forces a Rethink Across Indian IT
With GPT-5 sharpening the narrative, Indian IT faces short-term revenue shocks while eyeing new opportunities.
Image by Nalini Nirad
- By C P Balasubramanyam
When OpenAI unveiled GPT-5, an incremental yet meaningful advance in artificial intelligence, the global tech world sat up and took notice. The launch is poised to reshape India's sprawling IT services industry.Many industry experts believe the progress could potentially dent revenues in the short term, but unlock a new wave of long-term opportunities in the long run.
With marked improvements in reasoning, a sharp reduction in hallucinations and lower pricing than competitors, GPT-5 is expected to accelerate enterprise adoption of generative AI, particularly in software development.
This increased efficiency, however, could slow the Indian IT industry growth, creating a 2-3% drag over the next two to three years. As productivity gains rise, traditional effort-based
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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