India's real estate sector is grappling with the repercussions of a stagnating outsourcing industry, which has been a significant source of demand for housing. The top five software services exporters have reported less than 3% growth in revenue for the past ten quarters, a stark contrast to the double-digit growth seen in previous decades. As firms like Infosys Ltd. and HCL Technologies Ltd. forecast slower sales and layoffs, the impact is felt in cities such as Bengaluru, Hyderabad, and Pune, where unsold apartment inventories are rising. The outsourcing sector, which generated a million middle-class jobs annually, has seen a net loss of 85,000 jobs over the last three years. This downturn has prompted banks to reconsider their lending practices, particularly for mortgages and credit cards, as they face increased risks from a customer base that is now less stable. Meanwhile, sectors like healthcare and manufacturing are still looking to expand their workforce, highlighting a shift away from AI-exposed jobs. With AI technology advancing rapidly, the traditional outsourcing model is under threat, leading to expectations of reduced contract values and a shrinking workforce in the IT sector.