What AI does to IT services, outsourcing and hiring.
HSBC plans deep job cuts in its UK wealth management arm as it brings in artificial intelligence, according to a press report relayed by Sharecast. About 70% of financial adviser positions and roughly half of management and specialist roles are to go, with…
Finance angle The finance angle is cost: advisers are the largest expense in a wealth business, and HSBC is replacing most of them with digital service only three years after it set out to hire more than 100 wealth managers towards a target of 100 billion pounds of UK wealth assets by 2030. No saving has been disclosed, and…
Read the report at Sharecast ↗
HubSpot, the Cambridge, Massachusetts marketing and sales software company, is cutting 660 jobs, about 7% of a workforce of more than 9,000. Chief executive Yamini Rangan told employees that the move to AI is changing the product, its pricing and the way the…
Finance angle The finance angle is the business model, not the saving: HubSpot sells subscriptions per user to 306,000 customers, and AI agents that do the work of marketing and sales staff put that per-seat pricing in question, which is why the chief executive links the cuts to product and pricing. The article gives no figure for…
Read the report at Boston.com ↗
A World Bank report on India found that roughly three in four firms are not using artificial intelligence, and that use is concentrated among formal businesses while small informal ones have barely begun. It estimated that 14% of Indian workers are in jobs…
Finance angle The finance angle is the size of the untapped domestic market: with about 75% of firms not yet using AI, most enterprise spending on it in India is still ahead, and that is the revenue line Indian IT services companies, cloud providers and data-centre builders compete for. The report gives no rupee figure for that…
Read the report at Business Today ↗
Three of India's largest IT services companies have taken over global capability centres (GCCs), the in-house technology units that multinationals run in India, this year. TCS took on Best Buy's India centre for about Rs 2,000 crore, Wipro bought Mindsprint…
Finance angle The finance angle is revenue that is bought and locked in. Wipro's Mindsprint deal is put at about USD 1 billion (Rs 9,625 crore) of revenue over eight years; TCS paid about Rs 2,000 crore for Best Buy's centre. These takeovers come with service contracts of five to eight years, at a time when AI is pushing down…
Read the report at Lapaas Voice ↗
The Naukri JobSpeak index rose to 3,053 in September from 3,002 a year earlier, a 2% increase in white-collar hiring. AI/ML roles grew 20% and the auto sector 11%; BPO/ITES and global capability centres grew 4% each. IT and software services hiring fell 4%,…
Finance angle Wages are the largest cost line for Indian IT services companies, and hiring is an early reading of the demand they see. A 4% fall in IT services postings alongside 20% growth in AI/ML roles and 4% growth at global capability centres shows where the work is moving: toward specialised skills and toward clients' own…
Read the report at Angel One ↗
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