US AI startup Anthropic has introduced Claude Cowork, an advanced AI agent platform capable of automating complex business tasks. Using smart plugins, these AI agents can manage legal document review, data analysis, and marketing workflows, performing end-to-end processes that previously required human expertise and specialised software.
The launch has caused alarm among investors, raising fears of a significant disruption in the Software-as-a-Service (SaaS) sector — now being referred to as the “SaaSapocalypse.” Analysts are concerned that companies may increasingly bypass traditional software licences and human-driven IT services, potentially affecting revenues for major IT firms.
The market impact was immediate. Global software stocks experienced sharp declines following the announcement. In India, IT leaders such as TCS, Infosys, Wipro, HCLTech, and LTIMindtree saw significant share price drops, with the NIFTY IT index falling 6–7%, marking one of its steepest losses in recent years.
Experts warn that AI agents performing routine tasks could reduce demand for labour-intensive IT services, putting traditional revenue models based on headcount or SaaS subscriptions at risk. Software offerings may face pricing pressure or even obsolescence if companies rapidly adopt AI-driven alternatives.
Looking ahead, Indian IT companies are expected to pivot toward high-value, specialised services, including strategic advisory, complex system integration, and consulting projects where AI replacement is less immediate.
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