New Delhi, April 28 -- In a shift from the 'growth at any cost' era, IT services industry leaders like Infosys Ltd, HCL Technologies Ltd, and Tech Mahindra Ltd are increasingly avoiding low-margin contracts, preferring to sacrifice top-line revenue to protect their bottom lines from the impact of artificial intelligence (AI).

The change comes as generative AI begins to affect the traditional outsourcing model. By automating tasks that previously required thousands of engineers, AI is compressing deal values and forcing firms to choose between hyper-competitive, low-yield work and more lucrative, automated services.

The impact of this selectivity is already showing up in the books. HCLTech reported a 36% sequential drop in deal wins afte...