Former Genpact CEO: Don’t Be Afraid to Cannibalize Revenue With AI
Former Genpact CEO Tiger Tyagarajan argues that AI is pushing software companies to shift from selling tools to taking responsibility for business outcomes. As AI blurs the line between software and services, companies must integrate services into their offerings and focus on delivering reliable results. This transition may require revenue cannibalization in the short term but can lead to greater long-term value through outcome-based models.
- ▪Tiger Tyagarajan emphasized that software companies must move from automating tasks to managing complete business outcomes.
- ▪AI's probabilistic nature requires ongoing governance, supervision, and quality control, making services a core part of the product experience.
- ▪Companies like Palantir exemplify the integrated model where software and services are not segregated.
- ▪Tyagarajan advocates for revenue cannibalization through AI adoption to create more value in the long run.
- ▪The boundaries between software and services companies are blurring, leading to increased competition across overlapping domains.
Opening excerpt (first ~120 words) tap to expand
Software companies have spent years expanding from one use case to the next, turning focused tools for sales, marketing and customer service into broad enterprise platforms. But in a market increasingly shaped by AI, former Genpact CEO Tiger Tyagarajan says the next stage may depend less on adding features and more on taking responsibility for the work those tools are meant to complete.That was the central issue in Newsweek’s latest “AI Impact Forum” webinar, “Will Today’s Software Companies Be Tomorrow’s Services Companies?” in which our host, Dr. Ranjit Tinaikar, spoke with Tyagarajan, now a senior advisor and board member across technology, services, private equity and venture capital.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Newsweek.
Discussion
0 commentsMore from Newsweek
