India’s outsourcing industry may face significant job losses in the next two years due to the increasing impact of artificial intelligence (AI) on software development, according to Emad Mostaque, CEO of Stability AI. Mostaque predicts that most outsourced coders, up to level three programmers, in India will be replaced by AI-powered systems capable of developing software with fewer human resources. In contrast, countries like France with stronger labour laws are expected to provide more protection to developers. Mostaque highlighted that AI will act as co-pilots in programming tasks, reducing the need for classical programming skills but potentially creating new job opportunities in other areas.
India, with over 5 million software programmers, is particularly vulnerable to the advancements in AI. The country’s outsourcing firms, including Tata Consultancy Services (TCS), Infosys, and Wipro, cater to global clients, such as Wall Street banks and Silicon Valley tech giants. TCS, for example, plans to train over 25,000 engineers on generative AI using Microsoft’s Azure Open AI service to accelerate the adoption of the technology. While some experts believe elite engineering school graduates may design rival AI systems or be recruited by organizations like OpenAI, many other engineers without such credentials are concerned about the decline of routine coding jobs.
India ranks 14 globally at the international level as per the Global AI Index, published on 28 June 2023. IT services and consulting firms in India are already adapting to the rise of AI capabilities by partnering with tech giants like Google and Microsoft, as well as Microsoft-backed OpenAI. TCS, Wipro, and Infosys have established initiatives, such as AI-focused training programs, generative AI Centers of Excellence, and AI-first offerings, to enhance their AI capabilities and remain competitive in the evolving market. Tech Mahindra is also actively involved in AI and Intelligent Automation projects to meet demand and improve operational efficiency. Accenture’s expansion in AI and data capabilities includes the recent acquisition of Bengaluru-based industrial AI company Flutura. Infosys announced on Monday that it has entered into a new agreement with a current client, encompassing a five-year duration, to deliver artificial intelligence (AI) and automation services. The deal is expected to involve a significant investment of approximately $2 billion as per a Reuters report.
