- Published on September 24, 2025
- In IT Services
AI Pushes Indian Tech SMEs to Rethink Survival Playbook
According to a Nasscom report, SMEs are expected to contribute 6–7% of India’s technology sector revenues in FY25, roughly $280 billion.
- By C P Balasubramanyam
India’s small and mid-sized technology firms are facing one of their biggest challenges yet. Artificial intelligence (AI) is forcing them to dismantle decades-old business models that have relied on low-cost delivery and headcount scale. For many, survival now depends on reinvention.
Industry experts say the shift is unlike previous technology waves. “The Indian tech SME industry has weathered many technology waves,” said Irshad Syed, partner at consultancy Slingshot. “But this AI wave questions the very basis of the predominant business model, which is based on cost arbitrage. Hence, this warrants a first principles approach.”
According to a Nasscom report, SMEs are expected to contribute 6–7% of India’s technology sector revenues in FY25, roughly $280 billion. The seg
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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