WNS CEO Says AI Will Not Kill India Outsourcing Jobs As FY26 Tech Revenue Seen At $315 Billion

AI fears are rising, but India’s outsourcing leaders are pushing back. WNS chief Keshav Murugesh says jobs will shift, not disappear, as firms rebuild delivery around AI.

Growth Outlook Stays Strong Even As Automation Spreads

India’s outsourcing and IT services industry is facing a new anxiety cycle: whether AI will reduce headcount by automating routine work. Yet the latest industry outlook still points to growth in FY26, even with faster adoption of generative AI across delivery teams. 

Nasscom’s FY26 projection pegs the tech sector at $315 billion revenue with 6.1% growth, and 135,000 net new jobs, taking total employment to 5.95 million. This was reported on February 24, 2026 and echoed across multiple Indian business desks.

What Is Driving The Debate: AI Versus Headcount In BPM And IT Services?

The immediate trigger is a public pushback from WNS CEO Keshav R. Murugesh, who told the Financial Times that AI will not kill jobs in India’s outsourcing sector, but will change how work is delivered. The interview was published in the India Business Briefing on February 27, 2026.

Behind that statement is a bigger client shift. Buyers are asking for tighter controls, faster outcomes, and variable-cost models. Murugesh’s view is that AI, including agentic AI, helps meet these goals, while pushing providers to upgrade talent and redesign processes rather than simply cut staff. 

The numbers below set the baseline before the WNS CEO’s comments.
 

Those projections are now being used by industry leaders to argue that the “AI equals layoffs” storyline is too narrow.

WNS CEO’s Case: AI Will Redesign Delivery, Not Replace People

Murugesh’s position is that outsourcing has already moved from basic voice and back-office work to analytics and automation, and AI is the next layer. His main point is not that every role is safe, but that the industry adapts by moving people from repetitive tasks to higher-value work such as exception handling, domain-led operations, and AI governance.

This view also aligns with how large global firms are placing bets. Capgemini’s $3.3 billion deal for WNS is being framed around “intelligent operations” and AI-enabled business processes, signalling that the market expects demand for managed services to evolve rather than collapse.

At the same time, firms are candid that AI will pressure traditional billing. TCS CEO K. Krithivasan has said the company is urging staff to use AI tools to deliver faster and cheaper services, even if it reduces revenue in the near term, which points to a commercial reset in the sector.

Why The Narrative Shifted: Nasscom Outlook, TCS Push And Wipro’s Stand

Over the last week, multiple signals came together. Nasscom’s FY26 forecast, reported on February 24, 2026, projected growth and job additions, but also flagged AI-led services as a key driver.

Then, on February 25, 2026, Reuters reported the TCS stance on AI adoption despite revenue risk, reflecting how top-tier firms are choosing competitiveness over protecting older models.

A day earlier, on February 23, 2026, Reuters quoted Wipro’s Hari Shetty calling AI an opportunity, and referenced a World Economic Forum estimate that AI could create 170 million jobs globally while disrupting about 92 million. That argument has been used to suggest the net effect is expansion, but with role churn and a skills reset.

Here is the fast timeline of key developments and what each signalled.
 

After this table, the common thread is visible: leaders are not denying disruption, they are selling a transition plan.

What Stakeholders Are Saying

Murugesh is arguing that AI becomes a growth lever if providers build domain depth, governance and strong outcomes, while warning that not all delivery setups will survive.

TCS is focused on productivity and speed, even if it forces short-term commercial pain.
Wipro’s Shetty is projecting a longer runway for AI-driven demand and pushing for “AI-literate” engineers.

Meanwhile, industry coverage in India has also highlighted that campus hiring has cooled from earlier peaks even as net headcount is expected to rise, reflecting churn at the entry layer.

For workers, the loudest message is upskilling. A LoansJagat explainer published on May 25, 2025 specifically urges investment in skills such as AI and data analytics, tying it to employability and pay outcomes.

Conclusion

AI is tightening the screws on routine outsourcing work, but FY26 projections still show growth and net job additions. The sharper risk is not job extinction, but who adapts fast enough.