# AI Compresses Outsourcing Prices

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.

- Conviction: 40 / 100 (forming)
- Horizon: Emerging (watchlist)
- Tracking since: 2026-10-26T00:00:00.000Z
- Last updated: 2026-10-26T06:40:12.655Z
- Canonical: https://polylog.news/trends/ai-services-deflation
- Publisher: Polylog

## Recent evidence

- [confirms] Infosys cuts its growth forecast again and its shares fall 4% as AI squeezes India's outsourcing model (2026-10-26): 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.