BENGALURU, Nov. 10 -- Hexaware Technologies wants its salespeople to get "really, really rich". The IT services company has replaced target-based sales incentives with commissions linked directly to the revenue employees bring in, betting that bigger rewards will translate into more business.

It is not alone in rethinking how it wins contracts. As artificial intelligence (AI) reshapes client demand and competition intensifies, mid-sized IT services firms are changing how they motivate sales teams and reach customers. LTM Ltd is offering separate incentives for AI-native deals, while Coforge Ltd is turning to external deal advisors to access new opportunities.

For IT services firms with $1-5 billion in annual revenue, the challenge is to...