Indian Outsourcing Firms Face Profit Challenges Amid Labour Code Changes and AI Shift

India's outsourcing industry, led by giants like Infosys and Tata Consultancy Services (TCS), faces near-term profit pressures due to new labour codes increasing employee costs and challenges from evolving technology demands. While Infosys raised its sales forecast, TCS reported a 14% net income decline. The sector contends with reduced enterprise software orders, higher US visa fees, and a shift toward AI-driven services, prompting questions about long-term viability despite growth in AI revenue streams.