From IT-Enabled Services (ITES) to Information-Based Services (IBS) in India: Attrition, Retention, and Conflict Management in the Age of Generative AI (GenAI)

India’s transition from an information technology-enabled services (ITES) economy to an information-based services (IBS) hub signifies a profound structural shift in the global digital services landscape. The IBS segment, encompassing artificial intelligence (AI), machine learning operations (MLOps), advanced analytics, data engineering, generative AI (GenAI), model governance, and human-in-the-loop (HITL) frameworks, is now the fastest-growing component of India’s IT-Business Process Management (BPM) industry. Drawing upon four primary datasets (National Association of Software and Service Companies [NASSCOM] 2024; Ministry of Electronics and Information Technology [MeitY] 2025a; NASSCOM & MeitY 2024; NASSCOM & Boston Consulting Group [BCG] 2024), and firm-level disclosures, this study examines employment restructuring, skill demand–supply gaps, automation dynamics, and policy interventions shaping the IBS labour market. Information-based services revenues are projected to reach US$17 billion by FY2027, contributing over 40% of IT-BPM income by 2030, with IBS-driven occupations such as AI engineers, data scientists, and MLOps specialists growing at 20–25% annually. However, a projected talent deficit of 140,000 professionals by 2027 highlights critical gaps in workforce readiness, education, and industry-academia integration. Generative AI adoption is automating routine BPM roles while simultaneously creating augmentation-driven opportunities in model validation, governance, and AI explainability. Policy initiatives such as FutureSkills Prime and the IndiaAI Mission are essential to building IBS-specific talent pipelines. The study develops an IBS Labour Transition Model, offering actionable insights for policymakers, industry leaders, and educators to sustain India’s competitiveness in the global IBS economy.