Ashok Soota refutes Vinod Khosla, says AI is transforming IT services

Happiest Minds chairman says IT services remain essential as AI creates higher-value opportunities, countering Vinod Khosla's prediction that outsourcing will vanish

Ashok Soota, the founder and chairman of Happiest Minds Technologies, said the idea of IT services companies turning redundant in five years due to the impact of artificial intelligence (AI) is misplaced as technology has always evolved to create newer opportunities.

 

He was responding to a comment by Vinod Khosla, founder of Khosla Ventures, that India’s much-vaunted IT and BPO services industry will cease to exist as new AI-native services replace traditional outsourcing models.

 

“IT services will remain essential in customising solutions for diverse industries and ensuring enterprises innovate faster and achieve superior business outcomes. AI is transforming IT services into higher-value offerings, empowering us to deliver smarter, faster and more cost-effective solutions. The industry is not dying; it is growing as the essential partner for enterprises and startups navigating the disruptive AI age,” he said in a statement.

 

 

On Tuesday, Vinod Khosla, serial entrepreneur and venture capitalist, said that in the next five years, the idea of IT services and outsourcing will vanish. “The whole idea of IT services will go away. By 2030, there will be no such thing as IT services or BPO, they will be gone. There will be new kinds of services based on AI because India has the best talent, engineers and education in the world,” he added.

 

Soota also cast doubts on Khosla’s opinion that doctors will lose their jobs in the coming decades, saying it underestimates the human aspect of healthcare. “AI is being used as a powerful tool that empowers doctors by freeing them from routine tasks, not replacing them.”

 

Soota said Khosla’s remarks risk undermining the credibility and confidence of India’s flourishing IT industry, which continues to play a vital role in global business transformation.

 

“It is essential to highlight how AI is augmenting our capabilities, creating new opportunities, expanding our markets and strengthening India’s position as a global technology leader. Far from dying, IT services are becoming the trusted bridge between cutting-edge AI and real-world enterprise needs.”