10 May 2026
- India's outsourcing industry boomed for decades by providing low-cost labor for coding, testing, and support to global firms. - Generative AI like ChatGPT now automates these repetitive tasks, slashing demand for large junior teams. - Clients push vendors for AI-driven productivity, eroding traditional headcount-based billing models. - Indian IT giants cut fresher hiring and announce major layoffs, signaling structural disruption. - Multinational GCCs in India now hire faster for advanced AI and R&D roles, bypassing service firms. - The sector faces reskilling pressures as cheap labor loses edge to automation tools.
