AI disrupts India's technology outsourcing business
Aug.12,2024

Asia Tech Wire (Aug 12) -- AI is disrupting the technology outsourcing business in India.

The industry would have to transform to adapt to the new AI landscape, but this change could lead to the loss of a large number of highly attractive jobs.

Large Indian outsourcing companies are already using AI and plan to integrate it into all their operations. This may not save low-end businesses that operate call centers or perform other basic tasks in the so-called business process outsourcing industry.

AI has accelerated the decline of labor intensity in the Indian tech industry. In the past fiscal year, the total workforce of India's three largest tech companies fell by more than 60,000, with the outsourcing business suffering the most.

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