Generative AI keeps lowering the price clients pay for labor-based IT and business-process services, so outsourcing exporters such as India face recurring guidance cuts and slower services-export earnings.
forming · confidence 40 · Emerging (watchlist) · tracking since October 26, 2026 · updated October 26, 2026
Infosys cut its guidance again, to fiscal 2027 revenue growth of only 1-2%, and its shares fell 4%, with AI cited as squeezing India's outsourcing model. This is the recurring guidance cut the thesis predicts for labor-based services exporters.
Supporting · October 26, 2026
Infosys cuts its growth forecast again and its shares fall 4% as AI squeezes India's outsourcing model
Infosys cut its guidance again, to fiscal 2027 revenue growth of only 1-2%, and its shares fell 4%, with AI cited as squeezing India's outsourcing model. This is the recurring guidance cut the thesis predicts for labor-based services exporters.
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