A lot of IT work that gets done in India is low skill things that could be automated even before AI codegen tools. These jobs are particularly vulnerable to AI productivity gains .
The thesis here is that current gen tools should enable 2 people do the work of 10 and LLM models get paid the budget of 2-3 devs.
The outsourcing org comes out ahead with spending only 70% as before (salary of remaining devs will naturally increase)
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India is by far the largest market for this. 1yr free is for same reason any VC funded company discounts their product or gives it free first, or Microsoft famously rather have you use their software pirated than not at all.
This is only to get adoption, if your workers only know how to code with Claude or Codex then you are going to buy those tools as a company
Nobody is going back once you get them to change. OpenAI et al hope to capture 30% value of the IT outsourcing sector while making to cheaper by 30%. There is no free lunch.
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The number of CS “grads” are not a useful metric for India.
The industry shifted to hiring other engineering streams to any grads with aptitude to learn a long while back.
The vast majority of them don’t have any programming skills, don’t have critical thinking skills, are poor at communication.
They are unemployable. Don’t take it from me, NASSCOM says this too.
The degrees are largely from mills that charge up to $80k-$100k (med degrees go even higher) promising jobs but don’t teach much.
The thesis here is that current gen tools should enable 2 people do the work of 10 and LLM models get paid the budget of 2-3 devs.
The outsourcing org comes out ahead with spending only 70% as before (salary of remaining devs will naturally increase)
——
India is by far the largest market for this. 1yr free is for same reason any VC funded company discounts their product or gives it free first, or Microsoft famously rather have you use their software pirated than not at all.
This is only to get adoption, if your workers only know how to code with Claude or Codex then you are going to buy those tools as a company
Nobody is going back once you get them to change. OpenAI et al hope to capture 30% value of the IT outsourcing sector while making to cheaper by 30%. There is no free lunch.
——
The number of CS “grads” are not a useful metric for India.
The industry shifted to hiring other engineering streams to any grads with aptitude to learn a long while back.
The vast majority of them don’t have any programming skills, don’t have critical thinking skills, are poor at communication.
They are unemployable. Don’t take it from me, NASSCOM says this too.
The degrees are largely from mills that charge up to $80k-$100k (med degrees go even higher) promising jobs but don’t teach much.