AI Threatens India's Multi-Billion Dollar Tech Services Sector

The rise of generative AI is creating a seismic shift for India's technology sector, directly threatening the labor-arbitrage model that made it the world's back office. This represents a strategic inflection point, moving beyond mere automation to challenge the core value proposition of Indian IT giants like Infosys and TCS. The country's decades-long dominance, built on supplying skilled, cost-effective tech talent for white-collar tasks, is now facing an existential test from AI-powered efficiency. This disruption puts immense pressure on Indian firms to evolve from service providers to AI-native innovators, a transition that will define their future. For global corporations, it signals an opportunity for radical cost reduction, but for India, it's a national economic challenge. The imperative is to rapidly upskill millions and pivot the entire industry up the value chain, a race against time that will determine the next chapter of its tech landscape.