AI could shake up India's IT outsourcing, says Economic Survey
Business
India's latest Economic Survey warns that AI is changing the game for the country's IT outsourcing industry.
As generative AI gets smarter, companies might stop choosing India just for cheap routine work—putting a big part of the sector at risk.
What about jobs and skills?
The report points out that AI could quietly replace some white-collar jobs by automating tasks usually outsourced to India.
Even though employment projections point to growth in parts of the tech sector, there's concern that many workers may not have the right skills to keep up.
The industry needs to level up
With IT exports and the local AI market both booming, the survey suggests Indian tech firms need to move toward higher-value work—not just basic tasks—to stay competitive as technology keeps evolving.