🧔♂️ A friendly human may check it before it goes live. More news here
AI unlikely to cut jobs in India’s outsourcing sector, CEO says
The CEO of WNS, a global outsourcing firm described by the FT as part of Capgemini, said AI is unlikely to eliminate jobs in India’s outsourcing sector, citing history where technology created new roles.
Murugesh outlined five phases of industry development, from early offshoring to data analytics, RPA, and now AI, highlighting the sector’s evolution.
He said clients seek reliable partners to manage disruptive processes and gradually shift from fixed to variable costs as trust builds.
Murugesh explained that clients bought RPA licenses but needed outsourcing firms to implement them, and now AI is viewed as a tool for measurable business value beyond cost savings.
While acknowledging AI’s potential, he argued that technology tends to expand opportunities and create new categories of work rather than replace jobs outright.
🔗 Source: Financial Times
🧠 Food for thought
Implications, context, and why it matters.
The CEO’s comments follow Capgemini’s $3.3 billion acquisition of WNS
- WNS’s CEO spoke after Capgemini closed its acquisition of the company, a deal meant to build a leader in “Agentic AI-powered Intelligent Operations” 1.
- The transaction pairs Capgemini’s consulting work with WNS’s experience running outsourced business processes 1.
- The CEO said AI can produce measurable business value beyond cost cuts, which matches the reasoning Capgemini has shared for the acquisition 1.
- Some industry commentary ties the approach to demand for operations priced around outcomes, alongside advisory services 2.
AI is reshaping India’s outsourcing workforce, not just jobs
- The CEO argued AI is unlikely to wipe out jobs in India’s outsourcing sector. Growth is leaning more on productivity gains than headcount expansion.
- FY26 revenue is projected to rise 6.1% to $315 billion, while AI-specific revenue is expected at $10–12 billion, around 3–4% of the total 3.
- That gap suggests the near-term effect looks more like upgrades to existing outsourcing services than broad replacement.
- Hiring growth has eased to about 2.3%, while the industry has upskilled more than 2 million professionals in AI 3. The “Human + AI” team model seeks to turn efficiency gains into new growth opportunities 3.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.