Impact of AI on small IT companies:Exports from Crystal IT Park drop by 19%; pharma sector stabilises situation

The latest export figures from Special Economic Zones (SEZs) have raised concerns among Indore’s small IT companies and startups. While large companies maintain their strength, the city’s prominent IT hub, ‘Crystal IT Park’, is feeling the impact of technological changes. A 19 percent decline has been recorded in its annual exports. Last year, the exports of companies in ‘Crystal IT Park’ were ₹706 crore, which has now fallen to ₹567 crore. Experts say this is not just a business loss, but the impact of Artificial Intelligence (AI) on small companies’ projects and youth employment. The silver lining is that the pharma sector has held its own amidst war and recession. Challenges faced by small companies 1. Expiring long-term contracts: Foreign clients are now relying on AI tools instead of giving work to companies for small and routine tasks (like basic coding, testing, and data entry). As a result, small companies are losing old projects and not getting new ones. 2. Lagging technology from big companies: Giants like TCS and Infosys are heavily investing in AI to update themselves, but Indore’s smaller companies, due to limited budgets, are out of the race. 3. Direct threat to jobs: When work can be done by AI in less time and at lower cost, companies are stopping the recruitment of new developers. The number of employees in small IT units has started to decrease, which is directly impacting the city’s IT employment. 4. Changing client perspective: Clients from America and Europe are no longer trusting small companies that work with old technologies. In the last months of the year, many small units were left without any major assignments. Significant decline and startling figures Overall performance this year (2025-26) Business is also being impacted as consignments are not being shipped Narendra Sen, IT Specialist, says, Small companies are seeing a decline in both business and employment due to not getting long-term contracts. The impact of AI has also started to become visible. However, good opportunities in data centers and GCCs are also creating hope. Meanwhile, experts from multi-product SEZ units say that difficulties have increased since February 28. Due to difficulties at the port in exports, business has also decreased as consignments from many units could not be shipped.