AI puts hourly billing model at risk

Pakistan’s IT exporters should move away from billing clients by the hour and offer specialised, results-focused services as AI makes conventional coding and manual testing less valuable, industry experts told The Express Tribune. Software exports and consultancy together brought in $521 million during the first quarter of FY27, accounting for 41% of IT exports. SBP figures show consultancy receipts of $364 million and software exports of $157 million, up around 19% combined from the same period last year.

The experts said AI-driven productivity could put pressure on hourly revenues, urging firms to develop proprietary tools, charge according to value and train workers in AI-enabled services. They recommended building expertise in areas such as enterprise AI integration, data engineering and cybersecurity, while expanding sales efforts beyond the United States and United Kingdom into markets including Saudi Arabia and the UAE. Pakistan’s total IT exports exceeded $1.2 billion in the quarter, with freelancers contributing $333 million.