Market sentiment around India’s IT services industry has turned cautious after a new automation rollout by an AI startup triggered fears of faster disruption to traditional outsourcing models.
Investor anxiety was reflected in sharp stock movements. On February 4, shares of major Indian IT exporters such as Tata Consultancy Services, Infosys, Wipro, HCL Technologies, and Tech Mahindra fell by up to 6% in early trade. A day earlier, US-listed peers Accenture and Cognizant dropped close to 9%, showing that the selloff has spread across global technology services companies.
At the center of this reaction is a new enterprise automation offering from Anthropic.
In January, the AI company introduced an agentic product called the Claude Cowork agent for corporate users. Soon after, it expanded the system with 11 new plug-ins aimed at automating routine business activities and directly connecting Claude’s AI with commonly used enterprise software.
These plug-ins are designed to work across functions such as legal, sales, marketing, data analysis, finance, customer support, and research. They link tools like email, chat, calendars, project trackers, and internal knowledge bases to streamline workflows across teams.
According to Anthropic, companies can customise these plug-ins to fit their internal processes. They can be built, edited, and shared within organisations without advanced technical skills, making large-scale deployment easier.
In day-to-day use, the system can help manage schedules, plan tasks, retain work context, draft documents, prioritise product roadmaps, generate marketing content, track campaign performance, and support enterprise search and analytics.
For investors, the concern is clear. AI agents that can plan tasks, retrieve data, generate documents, and coordinate workflows could reduce demand for large teams handling repetitive or process-driven work. While automation has long existed in IT services, tools that combine planning and execution raise the risk of pricing pressure and slower demand growth.
The impact was visible in overseas markets as well. American depositary receipts of Infosys fell 5.56% to $17.32, while Wipro ADRs declined 4.83% to $2.56. Broader market weakness added to the pressure, with the Nasdaq Composite down 1.43% at 23,255.19 and the S&P 500 lower by 0.84% at 6,917.81.
The developments have renewed debate over how quickly AI-driven automation could reshape the global IT services business model.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
