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AI Contracts Set to Disrupt Traditional Multiyear Deal Model, LTM CEO Warns
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Moneycontrol•19-10-2026, 12:03
AI Contracts Set to Disrupt Traditional Multiyear Deal Model, LTM CEO Warns
- •LTM CEO warns that artificial intelligence contracts are unlikely to follow the traditional multiyear deal model used in the past.
- •This evolving shift could significantly change how IT services companies approach and secure large-deal bookings.
- •Traditional multiyear agreements have historically served as a critical indicator for future revenue visibility in the IT sector.
Key Questions Answered
According to LTM CEO Venu Lambu, rapid changes in AI costs and continuous innovation make businesses reluctant to lock in pricing and commit to long-term arrangements spanning three to five years.
LTM reported a pure AI revenue run rate of $150 million on a quarterly basis, which accounts for 12 percent of the company's total revenue.
LTM launched BlueVerse Studio in Bengaluru as a hub to help clients scale agentic AI solutions from experiments to practical applications while ensuring trust, governance, and measurable ROI.
