In a recent analysis, investment bank ING reported that India’s outsourcing sector is maintaining its momentum even as artificial intelligence (AI) reconfigures the nature of work. The bank noted that while AI is automating routine tasks, it is also creating new roles that demand higher technical skills, allowing the industry to sustain growth.
ING’s view on AI’s impact
ING’s commentary, published in Business Standard, highlights that the outsourcing ecosystem in India is adapting to AI-driven changes. The bank argues that the shift is not a wholesale displacement of jobs but a transformation that opens up fresh opportunities in data analytics, AI model training, and process automation. According to ING, the sector’s resilience stems from a large talent pool and a culture of continuous upskilling.
Nomura report confirms hiring outpaces firing
A separate study by Nomura, reported by The Times of India, adds weight to ING’s assessment. The research, which examined hiring trends across the country, found that the number of new positions created by AI initiatives exceeds the number of roles being eliminated. The report describes this scenario as “ground zero” for AI-driven employment, indicating a net positive effect on job creation in the Indian market.
IT industry’s continued strength amid AI growth
Analytics Insight’s feature on India’s IT sector reinforces the narrative of sustained growth. The article explains that despite the rapid adoption of AI technologies, the country’s IT industry remains robust. It attributes this stability to the sector’s ability to integrate AI tools into existing services, thereby enhancing productivity without eroding the workforce. The piece also notes that firms are increasingly investing in AI training programs for their employees.
Rising demand for tech talent
Business Insider’s coverage of the so‑called “AI jobs apocalypse” debunks the myth that AI will lead to widespread unemployment. The outlet reports that demand for tech talent is actually on the rise, driven by the need to develop, maintain, and oversee AI systems. This trend aligns with ING’s observation that new AI-related roles are emerging across the outsourcing value chain.
Future trends for the BPO sector
Goodcall’s 2026 BPO industry outlook outlines key developments that are shaping the market. The report identifies automation and AI as primary growth drivers, while also highlighting the importance of soft skills and domain expertise. It projects that BPO providers who can blend technology with human insight will capture a larger share of the market.
Uncertainties and challenges
Despite the positive signals, The Dollar Business cautions that the outsourcing industry faces uncertainties. The article discusses potential regulatory shifts, the need for continuous reskilling, and the risk of overreliance on automation. These factors could influence the pace of growth and the nature of job creation in the coming years.
Broader context of technological change
Research from the UC Berkeley Labor Center on technological change across five industries provides a broader backdrop. The study identifies both opportunities and risks associated with automation, including potential wage pressures and changes in working conditions. While the Indian outsourcing sector appears to be navigating these challenges successfully, the findings underscore the importance of policy support and workforce development.
Collectively, the evidence points to a scenario where AI is reshaping, rather than eroding, the outsourcing landscape in India. Firms that invest in talent development and integrate AI tools strategically are likely to thrive, while those that fail to adapt may face competitive pressure.