In FY26, four of India's leading IT services companies—Tata Consultancy Services, Infosys, HCLTech, and Tech Mahindra—reported a 3-4% increase in revenue per employee (RPE), indicating a significant rise in productivity. This trend comes as the industry adapts to the growing influence of artificial intelligence (AI) and aims to decouple headcount from revenue growth. In contrast, Wipro experienced a decline in its RPE during the same fiscal year.

Phil Fersht, CEO of HfS Research, noted that the increase in RPE alongside a reduction of nearly 7,000 employees reflects a shift towards a services-as-software model. This transition suggests that value creation is increasingly relying on platforms, automation, and AI rather than traditional labor hours. The report highlights a changing workforce dynamic, with fewer overall employees and a focus on high-end AI, consulting, and specialized talent.

Analysts believe that the IT sector is gradually moving away from a linear revenue model tied to headcount, embracing a more platform-based approach that prioritizes productivity and efficiency. This shift could reshape the industry's future operations and workforce structure.