AI agents that promise to enable companies to do more with the same staff, or even less, by automating work, represent an attack on the basic business model of India’s technology services sector: charging clients an hourly rate for labor deployed to perform a wide range of tasks. (Nikkei montage/Source photos by Reuters)
SAYAN CHAKRABORTY
February 10, 2026 1:18 p.m. JST
BENGALURU — A series of artificial intelligence-based workplace tools recently launched by U.S. firm Anthropic have demonstrated how advances in AI agents threaten to reshape the role of Indian technology outsourcing companies, analysts said, putting downward pressure on workforces. Shares of Tata Consultancy Services (TCS) have already fallen, highlighting lingering concerns about the nearly $300 billion sector’s ability to keep up with rapid advances in AI.