Why Indian IT Giants Becoming Glamorous Call Centres?

Critics argue that there has not been significant progress in developing proprietary products or in high tech innovation areas such as Artificial Intelligence and semiconductors.;

Update: 2026-02-28 17:30 GMT

The Indian IT sector is recorded as one of the most consolidated and compact IT services in the world. But this has come under her questioning now due to the latest activities involving the Indian IT operations.

The Indian IT industry is recognized as one of the largest IT service providers in the world. However, in recent times, the sector has been facing strong criticism. According to these critics, the Indian IT industry has turned into “glamorous call centers.”

Major companies like Tata Consultancy Services and Infosys are said to be largely focused on providing consulting, software maintenance, outsourcing, and body shopping services to clients in the United States and Europe.

Critics argue that there has not been significant progress in developing proprietary products or in high tech innovation areas such as Artificial Intelligence and semiconductors.

Meanwhile, product based companies like Nvidia and Anthropic are rapidly moving toward trillion dollar valuations. In contrast, Indian IT firms are still primarily dependent on the services model.

Another key concern raised is the lack of strong government support. It is argued that the education system focuses more on degrees than on skills and research, which has left India behind in AI and chip manufacturing. Although initiatives such as “Sem India” and “Fab India” have been announced, critics say there are no clear visible results from their implementation.

Some also claim that while IT companies earn large profits and distribute dividends, they are not making large scale investments in AI or hardware. The sector is even described as a system that turns middle class youth into clerks rather than innovators.

There are also opinions that reservations and welfare policies are being used for political gains rather than technological advancement. It is said that if American companies reduce projects, the Indian IT industry could face major challenges, as it lacks strong independent research and product development.

The discussion is also linked to stock market performance, with mixed opinions about Indian IT shares. Some blame IT companies themselves, while others point to government policies and political leadership. At the same time, the analytical approach to this debate has received appreciation.

After previously discussing topics such as Japan’s economy, business analysis, and the future of AI, this platform has now started a new conversation focused on criticism of the Indian IT sector and stock updates.

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