Why Claude Cowork is a math problem Indian IT can't solve
6 hours ago
- #AI Impact
- #Economic Transformation
- #Indian IT Sector
- Indian IT sector faced a significant stock slump due to Anthropic's Claude Cowork plugin release.
- New AI plugins threaten high-volume, repetitive tasks traditionally outsourced to Indian IT firms.
- Indian IT contributes 10% to India's GDP and employs 5 million people directly.
- Experts warn that companies failing to adapt to AI quickly may become obsolete.
- Up to half of traditional outsourcing work, like contract reviews and compliance, is at risk.
- Indian IT firms are shifting from cost arbitrage to innovation, but mismanagement could harm urban economies.
- TCS and Infosys are integrating AI into their services, with TCS reporting $1.8B in AI revenue.
- Only about 20% of traditional IT delivery efforts are expected to be affected by AI.
- Junior and mid-level roles are most vulnerable, but upskilling can secure future employment.
- AI is seen as a filter rather than an existential threat, pushing the industry toward strategic transformation.