Nasscom chairman Rajesh Nambiar sounded the alarm on the looming threat of displacement faced by workers in India’s business process outsourcing (BPO) industry due to the rise of advanced artificial intelligence (AI) systems. Nambiar, who also serves as the head of IT services firm Cognizant in India, cautioned that BPO roles centered around repetitive tasks could swiftly succumb to automation driven by AI technology.
While addressing the concerns within the BPO sector, Nambiar emphasized that the risk extends beyond it. He highlighted that software services roles not leveraging AI are also vulnerable to replacement by AI-powered systems and tools in the near future. Professionals failing to integrate AI into their work processes, he cautioned, are at risk of being supplanted by those who do.
India's technology sector, valued at $250 billion, with over $194 billion in software and IT services exports, has been a cornerstone of the country's economic growth. However, Nambiar underscored that the widespread adoption of AI presents significant workforce challenges that cannot be overlooked.
The evolution of the BPO industry, according to Nambiar, has increased its susceptibility to technological displacement. He noted that the sector, valued at $48.9 billion, has progressed far beyond basic process management, thereby heightening the risks associated with automation. Particularly concerning is the emergence of generative AI capable of composing both prose and code, posing a threat to higher-skilled white-collar positions that were previously shielded from automation.
"This is the first time you are going to have a productivity enhancer, which will actually impact more if you are using your brain a lot more," remarked Nambiar, emphasizing the profound impact AI could have on cognitive-intensive roles.
While Nambiar acknowledged that the short-term impact of AI on jobs might be overestimated, he cautioned against underestimating its transformative potential in the medium to long term.
He warned that the next 5-10 years could witness AI's disruptive influence surpassing current expectations, urging stakeholders to prepare for the imminent changes.
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