Greater AI automation at Meta forces Wipro to take a 25% cut

Greater AI automation at Meta forces Wipro to take a 25% cut

Mumbai: Meta Platforms has scaled back its outsourced digital marketing work as part of a broader shift towards AI automation. Indian IT major Wipro, which counted on Meta as one of its top 20 accounts, will now take a 25% cut to its work contract, which was worth about $100 million before the announcement. 

According to reports, at least 200 Wipro employees who worked on Meta’s projects at the company’s Gurugram office will now be assigned to other projects. For Wipro, this remains a setback, as the company has yet to emerge from its revenue decline, even as its shares have fallen more than 23% over the last 12 months. This is the second setback for Wipro this year, after having lost an estimated $100 million contract with Estée Lauder, with investors questioning the company’s ability to retain major clients.

This push for AI automation is not limited only to Wipro though; other vendors for Meta, including Accenture, Concentrix and Teleperformance, have also lost work from Meta Platforms.

The move reflects a wider trend across India’s IT sector, where global companies are increasingly implementing AI-led automation for tasks that required an army of coders. For outsourcing giants like Wipro, the challenge now lies in how it manages to move beyond the time and tested labour arbitrage playbook to an outcome-based solution that integrates automation with lesser resources. 

Abizar Attari
Assistant Editor

I’ve always had a fascination with storytelling. Analyzing diverse perspectives and helping people understanding them simply is my life’s motto. I live to create stories that you’d love to read. When I’m not writing, you'll find me having a leisurely stroll on the beach or in the park.

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