Generative artificial intelligence (AI) is beginning to alter hiring patterns in South Asia, with multinational companies (MNCs) and firms integrated into global value chains (GVCs) reducing recruitment more sharply than domestic firms, signalling the technology's early impact on the region's export-oriented services sector, according to the World Bank's World Development Report 2026.
Indian IT companies are experiencing a growing trend towards outcome-based pricing models, moving away from traditional time and material or fixed-price contracts, as artificial intelligence reshapes client engagement and deal structures.
'While salary increments are moderating compared to last year, not all functions are moving at the same pace.'
India is a global leader in software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development, Sitharaman said noting these business segments are quite inter-connected with each other.
The Nifty IT index hit a more than nine-month low, trading at its weakest level since April 17, 2025.
US companies, hoping to save money during the recessionary phase, are likely to increase outsourcing of information technology services.
Fresher hiring grew by 8 per cent driven by non-IT services oil and gas, real estate, and education sectors.
It is expected growth will primarily be driven by continued demand from the US, a revival in the European market, especially continental Europe, and increased momentum in the adoption of new technologies.
The H-1B visa once symbolised the American Dream for Indians, but today's students are increasingly asking whether they need America at all. In 1995, the question was: How do I get to America? In 2026, it may be: Do I need to?
OpenAI and Anthropic are not simply enabling new software capabilities, they are moving directly into enterprise execution, workflow ownership, and decision orchestration.
AI will erase outsourcing jobs, redefine skills and disrupt global giants within five years, predicts Vinod Khosla. The IT legend urges young people to become generalists: Adaptable thinkers who can learn quickly, connect dots across disciplines and shift careers as technologies evolve.
On Tuesday, UK-based Standard Chartered's outsourcing of key banking jobs to India came under the lens of US authorities.
'The impact will be minimal and it will only increase compliance cost on consent, data flows, localisation timelines, internal audits, data mapping, and new tooling.'
French information technology (IT) and consulting services major Capgemini on Monday said it would acquire Mumbai-headquartered WNS for $3.3 billion in cash. This could be one of the largest merger & acquisition deals in the IT services and business process management sector.
To tap the domestic market, the country's second-largest information technology company set up a separate unit within its BPO arm in 2009.
'Companies will need to revisit compensation structures, contracts, staffing models, and human resources system.'
'There is a shift in what customers are thinking about in the long term and better planned structures are going to emerge as winners.'
International rating agency Standard & Poor's on Thursday lauded India's competitiveness in information technology, business process outsourcing and telecom sectors
The demand for chartered accountants in the corporate world has shot up with stringent income tax laws, which require compulsory maintenance of accounts by specified categories of taxpayers.
The US celebrates its independence day on July 4. But since it was Sunday, the American government had declared Monday as a holiday.
With the economy giving positive signals, hiring is back. However, so is attrition, with disgruntled employees demanding more or moving to greener pastures to make up for lost time and money.
Building on last year's clearance of 172K cases, I-T department is pushing for faster appeal disposals, penalty reforms and system-driven processes to curb litigation and boost tax certainty.
The year 2009, was one of the worst years in terms of job market as terms such as 'layoffs', 'pink-slips', 'right sizing' became hot topics in household discussions.
Swaminathan D ('Swami' Swaminathan), the current COO and senior vice president of Infosys BPO, is now the CEO and MD.
US-based financial services major Wells Fargo, which has set up an information technology and business process outsourcing facility in Hyderabad, is looking at locating back office processes, other than call centres, in India.
Fifteen Chinese companies are in talks with Indian information technology and telecom firms like Tatas, Cosmos and CMC for joint ventures in the sectors.
However, projections made over the last few years indicate a compound annual growth rate (CAGR) of 80-90 per cent. Research firm TPI believes this is "not easily achievable".
Reliance Communications has received approvals from Maharashtra and MIDC for its proposed 45-acre special economic zone.
India's largest information technology (IT) services provider, TCS, is setting up a greenfield business process outsourcing (BPO) centre in Ahmedabad that can house 2,000 people.
Companies say they have ensured that services to clients remain unaffected.
International Data Corp. analyst Conrad Chang thinks so, based mainly on the mainland's solid investment in skills and infrastructure.
India's smaller cities and towns would register a faster growth in software and business process outsourcing exports as information technology and BPO firms, backed by booming offshore orders, expand into secondary cities to arrest costs and talent a
There is a bit of a bad news for the business process outsourcing sector with a new study stating that hidden costs and added complexity have prompted 25 per cent participants to reduce outsourcing activities.
Indian information technology (IT) and businesses process outsourcing (BPO) firms that are heavily dependent on business visas can heave a sigh of relief as the United States Department of Labor (DoL) has decided not to change the Labor Condition Application (LCA) norms for now, said industry sources.
