‘AI deflation’ comes to India’s tech services giants and puts downward pressure on revenue

The Register — Apr 28, 07:34 ★★★★★

AI automation is finally eating into the billable-hour model that Indian tech services built their empires on.

TCS, Infosys, Wipro, and HCL Technologies are reporting revenue pressure as AI reduces the labor intensity of traditional outsourced IT work; headcounts remain stable for now. Clients are using AI agents to handle routine coding, testing, and support tasks that once required human contractor time, shrinking the service delivery footprint.

Oliver's take: India's service giants bet the ranch on humans doing cheap work at scale. AI doesn't care about labor rates. Now they're holding payroll while pricing power evaporates. The buffet is closing everywhere, not just GitHub.

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#LLMs #Agents #Enterprise #Labor

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