India’s IT and BPO sector has been a critical driver of economic growth, accounting for about seven percent of GDP and a significant portion of exports by leveraging low-cost, English-speaking technical labor. However, the rise of AI technologies capable of automating routine coding and back-office tasks threatens to disrupt this model by reducing demand for human labor, prompting Indian IT firms to shift toward higher-value, AI-augmented services and a leaner workforce. While revenues have held steady so far, the long-term outlook raises concerns about the sustainability of India’s services-led growth and its broader economic implications.
https://asteriskmag.com/issues/15/what-will-happen-to-indian-it