Anthropic automation stokes worries over India’s IT revenues

This story captures the flip side of the AI boom for a key part of the global tech stack: Indian IT services. Analysts are effectively saying the quiet part out loud—if Anthropic‑style automation really does compress application development and maintenance work, a big chunk of traditional Time & Materials revenue is at risk. That doesn’t just matter for Indian IT vendors; it matters for the global labour pool that has underpinned enterprise software for two decades.

From an AGI‑race lens, the implication is that economic pressure to adopt more capable AI agents will be intense in precisely the workflows where those agents threaten existing business models. If clients can get the same outcomes with fewer billable hours, they’ll push their vendors there, and the vendors will either embrace AI to protect margins or lose share to more AI‑native competitors. That accelerates deployment of powerful models in production environments across finance, telecom and retail.

There’s also a geopolitical dimension: India has positioned itself as an IT powerhouse partly on the back of this services model. If AI compresses that value chain, policymakers will be forced to think about moving up the stack—into IP, platforms and perhaps homegrown AI infrastructure—so India isn’t just a casualty of automation built elsewhere.