AI and the Future of Employment in India’s ITand BPO Industry

This paper examines recent trends in AI adoption in India’s IT and BPO sectors – focusing on automation of repetitive tasks, intelligent customer service (chatbots and virtual agents) and AI-powered coding assistants – and analyzes their impact on jobs and skills. We draw on the latest industry data and research (2022–2025) from sources such as NASSCOM, McKinsey, the World Economic Forum and market reports, to provide an in-depth view of how AI is reshaping work in India. We explore how Indian companies and policymakers are responding – through upskilling programs, partnerships and new business models – and what this means for India’s position in the global services market. The analysis highlights the “double-edged sword” of AI: the potential displacement of routine work, alongside the opportunities it creates for the workforce to upskill and move into higher-value work, which could further strengthen India’s global leadership in IT and outsourcing.