India's outsourcing industry, once a powerhouse of job creation, is facing significant challenges as artificial intelligence (AI) technologies disrupt traditional roles. The top five software exporters have reported revenue growth of less than 3% for the last 10 quarters, a stark contrast to the double-digit growth seen in previous decades. This stagnation has resulted in the loss of 85,000 jobs in the sector over the past three years, with companies like Infosys and HCL Technologies struggling to maintain hiring levels. As a consequence, cities such as Bengaluru, Hyderabad, and Pune, which rely heavily on tech workers for real estate demand, are witnessing sluggish sales and increasing inventories of unsold apartments.

Banks are now re-evaluating their lending practices, particularly for mortgages and credit cards, as the job security of their traditional customer base diminishes. Canara Bank has proposed stricter loan-to-value ratios and new collateral requirements for borrowers at risk of automation. While IT executives remain optimistic about AI creating new opportunities, the reality suggests a shift in job dynamics, with non-IT sectors like healthcare and manufacturing poised for growth. This changing landscape indicates that workers in these fields may enjoy better job security and housing options compared to their IT counterparts.