The project is being developed in collaboration with Dr Uma Rani, Senior Economist at the ILO 

This research programme examines how artificial intelligence and automation are transforming global service economies, with particular focus on IT services, business process outsourcing and digitally mediated professional work. Over the past three decades, countries such as India have become central hubs in global outsourcing networks, providing software development, digital services and knowledge-intensive business functions to firms across North America, Europe and Asia. The rapid expansion of AI technologies is now reshaping these industries, raising fundamental questions about the future of work, professional identities, skills and labour markets in both advanced and emerging economies. 

The project investigates how firms operating within global service value chains are integrating AI systems and automation tools into their operations, and how these transformations reshape organisational practices and employment structures. Particular attention is given to the ways in which workers, professionals and organisations navigate the transition toward AI-enabled service production, including changing expectations around skills, career trajectories and the organisation of knowledge work. 

Why This Research Matters 

 Artificial intelligence is increasingly becoming a central infrastructure of the global economy. Governments and corporations around the world are investing heavily in AI-driven technologies as part of wider strategies of digital transformation and economic competitiveness.
 
 Recent initiatives such as the India AI impact summit, highlight the growing strategic importance of AI for national development and global technological leadership. For countries whose economic growth has been closely tied to outsourcing and digital service industries, these transformations raise important questions about employment stability, skill formation and long-term development trajectories.
 
Understanding how AI reshapes global service industries is therefore crucial for analysing the future of work in the digital economy. 

Core Research Question 

 The research programme addresses several interconnected questions: 

Automation and the Transformation of Service Work

A central focus of the research is the transformation of knowledge-intensive service work. Industries such as IT services, consulting, data processing and digital business services have long relied on large workforces performing analytical, technical and managerial tasks within global outsourcing networks. The introduction of AI-driven technologies is altering these labour processes, automating certain tasks while simultaneously generating new forms of specialised work.

The research examines how workers, managers and organisations adapt to these changes, including how professional identities and workplace hierarchies evolve in AI-enabled service industries.

Skills, Labour Markets and the AI-First Economy

Another major focus of the project concerns the implications of AI for skills development and labour market transitions. As firms increasingly adopt AI-driven technologies, demand for certain technical and analytical skills is expanding while other forms of work are being reorganised or displaced.

Through engagement with universities and research institutions in India, the project also explores the changing pathways through which graduates enter and navigate employment in the emerging AI-first service economy. This includes examining how educational institutions, training programmes and firms respond to shifting skill demands.

Platforms, Gig Work and Digital Labour Markets

The research also examines the rise of digital platforms and gig economy infrastructures, particularly the growth of Indian digital platforms that organise labour through algorithmic management systems.

By situating platform-mediated labour within the broader context of global service value chains, the project explores how digital platforms reshape employment relationships, labour regulation and worker protections in emerging digital economies.

Development, Digital Sovereignty and Global Value Chains

The project situates these transformations within broader debates about development and globalisation. Outsourcing economies such as India have built significant employment ecosystems around global digital service industries. The rapid diffusion of AI technologies raises important questions about the sustainability of these development models.

The research therefore examines how states respond to technological disruption through industrial policy, regulatory frameworks and strategies aimed at strengthening domestic digital capabilities. Particular attention is given to questions of digital sovereignty, technological dependency and the governance of global digital infrastructures.

Fieldwork and Research Methods

The research is currently being conducted across multiple cities in India, involving engagement with firms operating within global service markets. These include multinational outsourcing firms, domestic service providers and emerging digital platform companies.
 
The project employs a mixed methodological approach combining:
 

 This multi-method approach allows the project to capture the organisational, social and policy dimensions of AI-driven transformation.
 
Collaborations and Partnerships:
 
The research programme is supported by the
 
University of the West of England

and involves collaboration with the researchers and practiotioners at
  -  International Labour Organization

- French National Centre for Scientific Research (Centre national de la recherche Scientifique)
 
-  ITforChange, India
 
The project also connects with a wider network of international collaborators across Europe, Asia, Africa and Latin America, including scholars and policy organisations working on the governance of digital labour markets and global production networks. Engagement with local researchers and universities in India forms an important component of the research.

Work in Progress
 
The programme is currently developing a series of outputs including:

Ongoing Activities:

Fieldwork