This is an interesting development. I would predict some of the biggest losers in the AI boom will be Indian (and similar) outsourcing companies. Companies like Wipro and Infosys have thrived off richer countries' businesses wanting grunt work done cheap, not caring necessarily about quality, as long as it meets some baseline functionality. LLMs are very good at this.
In addition, support volume must be taking a hit from AI agents too. When pricing stabilises, will Indian outsourcing still be competitive? Maybe. Maybe less so. If I were working for Infosys right now I'd be a more than a little worried.
Perhaps Anthropic anticipates a glut of engineers in the near future.
