I heard from Indian friends that several dev shops they used to work with have recently gone bankrupt...

Back then, they monopolized the design and development of over ten thousand American websites, relying entirely on outsourcing for low-level coding, testing, and maintenance—business was booming!
But with AI coming, the reality is even harsher:
✅ From 2025-2026, TCS (India’s largest IT company) has laid off 12,000 to 26,000 people, and other giants like Infosys, Wipro, and Tech Mahindra are also massively reducing staff. The top 7 companies have collectively cut tens of thousands of jobs this year.
✅ GCCs (Global Capability Centers) have laid off an additional 6,000+ people.
✅ The Nifty IT Index plummeted nearly 20% due to AI panic, wiping out hundreds of billions of dollars in market value.
✅ Fresh graduate hiring has collapsed by 80%, and low-level outsourcing models are being directly replaced by AI agents.
Overall industry revenue is still growing slightly (Nasscom estimates FY26 will reach $315 billion, +6.1%), but the golden era of “per head billing” is truly over...
#AIImpact