AI Threatens Indian IT Jobs, But Opportunities Arise

This is Corey with the story, here with your quick two-minute global update.

Indian technology stocks have taken a big hit lately, dropping about 20% this year on the

Nifty IT Index.

This route in the country's $300 billion outsourcing industry stems from fears that artificial

intelligence will disrupt the traditional back office model.

It kicked off in early February after a new tool for Manthropic promised to automate

key tests like legal and compliance work.

For the past three-and-a-half decades, India's software sector has created millions of

white collar jobs, building a vibrant middle class with strong, buying power.

This boom has driven demand for homes, cars, and eateries in cities like Bengaluru,

Hadarabad, and Guru Graham.

Indian IT leaders are pushing back, insisting the panic is overblown, and that AI will open

fresh doors.

Infosys chief Salil Perrek points out it could wipe out 92 million roles like developers

and testers, but create 170 million.

New ones in areas like data annotation and AI engineering.

Analysts offer mixed takes.

Jeffery's warns of slower revenue growth may be 3% less over five years as routine

services shrink.

But JP Morgan and HSBC see partnerships ahead with IT firms as key to rolling out AI and

big companies since enterprise software demands reliability, that peer AI tools lack.

Right now, AI brings in just $10 billion of the industry's $315 billion total revenue,

with overall growth at a modest 6% this year.

Hiring stays flat at 2.3% into next year, and billing shifts from hours to outcomes, meaning

short-term pain before a longer term.

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