Mumbai, Feb. 23 -- Jefferies in its latest report has revised downward its earnings estimates for the IT sector, citing structural changes driven by artificial intelligence (AI), which may significantly alter the traditional business mix of IT companies.

According to the report, AI is expected to structurally shift IT companies' business mix towards consulting and implementation services while shrinking the share of managed services.

This transition could increase cyclicality in revenue growth and require changes in talent strategies and operating models, thereby adding new risks for IT firms.

It stated "AI may structurally change IT business mix towards consulting/ implementation while shrinking managed services".

Jefferies noted tha...