Artificial intelligence agents that promise to let companies do more with the same or even fewer people by automating work represent an assault on the core business model of India’s tech services industry: charging clients an hourly fee for the manpower deployed to perform a wide range of tasks. (Nikkei montage/Source photos by Reuters)
SAYAN CHAKRABORTY
February 10, 2026 13:18 JST
BENGALURU — A string of artificial intelligence-based workplace tools recently launched by U.S.-based Anthropic have demonstrated how advances in AI agents threaten to reshape the role of India’s technology outsourcing companies, analysts said, putting downward pressure on headcount. Stocks in the likes of Tata Consultancy Services (TCS) have already tumbled, underscoring persistent concerns over the nearly $300 billion sector’s ability to navigate rapid advances in AI.