IT
Capgemini shares drop post-WNS deal on AI impact concerns
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Capgemini shares fell over 5% on Monday after the IT major announced a $3.3 billion (Rs 28,280 crore) cash acquisition of business process outsourcing (BPO) firm WNS. The decline reflects investor concerns about the potential impact of generative AI on the BPO market that Capgemini is targeting through this deal.
Analysts at Morgan Stanley noted that AI could make the BPO sector highly automated, shifting it away from its traditional people-intensive model. This could lead to lower revenues and intensify competition from new entrants, they said.
While…
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