ING Bank NV stated that as India moves up the value chain and gradually expands into more complex service businesses that are less susceptible to automation, there is little indication that the country's outsourcing industry is being displaced by artificial intelligence.

In a research report released on Wednesday local time, ING Bank economist Deepali Bhargava wrote that software services exports now account for about 5.2% of India's GDP, up from 3.3% before the pandemic; during the same period, business services including finance, accounting, engineering, research, and data analysis have more than doubled their share of GDP, reaching 3.3%.

AI Changes the Content of Outsourcing, Not the Total Demand

This performance has eased market concerns—previously, people worried that generative AI would take over work previously outsourced to low-cost regions, thereby affecting India's key industry. According to ING Bank data, India holds more than half of the global outsourcing market share, with software services exports bringing in about $205 billion (approximately 1.38 trillion Chinese yuan) annually, providing employment for around 5.8 million people; combined exports of software and business services account for about 8.5% of GDP, making it an important source of foreign exchange for India.

Bhargava pointed out: "In India and the Philippines, it is still too early to be concerned about the disruption that AI could bring to the industry. Existing signs indicate that the industry is adapting to change rather than declining. Artificial intelligence is changing the content of outsourcing, but not reducing the overall demand for outsourcing services."

Business growth is gradually shifting from repetitive tasks such as data entry, document verification, and customer support to high-value-added activities such as data analysis and software development; at the same time, risk management, engineering design, and R&D services are experiencing strong demand in India. Data shows that since 2022, India's digital delivery service exports have grown by 45%, higher than the global increase of 32%, helping India further expand its market share.