DXC is in talks to sell its only growing unit, guiding a 5% to 5.5% decline; Genpact says AI cuts the work
DXC confirmed talks to sell its insurance software unit, its only growing segment, while guiding to a 5 to 5.5 percent organic revenue decline; days later Genpact's chairman said AI will cut industry workloads and slow hiring. For services shareholders that means a shrinking revenue base, and for graduates in India a thinner entry-level ladder.
Richard Tang · 3 min read
DXC Technology−4.30% — DXC Technology, down 4.30 percent today, which runs IT systems for large companies and public bodies, is in talks to sell the only part of itself that still grows, and a peer's chairman has now said out loud why the rest of it shrinks.
On last week's earnings call, chief executive Raul Fernandez confirmed "ongoing discussions" over a sale of the insurance software business and cut full-year guidance to an organic revenue decline of 5 to 5.5 percent 1. Revenue was $3.03 billion, down 4 percent 1. Earnings per share fell to $0.67 from $0.84, bookings dropped 10 percent, and the book-to-bill ratio sat at 0.8 1.
Days later came the reason in plain words. NV "Tiger" Tyagarajan, chairman and former chief executive of Genpact−0.21% — Genpact, down 0.21 percent today, the business-process outsourcer, said artificial intelligence will cut workloads across IT services and slow hiring 2. The industry's leaders are planning for less billable work while selling the tools that remove it.
Agents take away the hours the work was billed on
The services industry was built on billing people's time. Genpact now sells what replaces those hours: software suites such as AP Suite and Record to Report that run finance and supply-chain processes with AI agents, marketed as "live in production. Not pilots" 3. The company rebranded itself an advanced technology company around this pivot in September 2025 4.
An agent removes the hours a task was billed on, so the revenue attached to those hours goes with them. That is the mechanism behind Tyagarajan's forecast of slower headcount growth and demand shifting toward people who design and supervise AI systems 2.
Insurance software fetches a price the services core never will
Investors have already voted on which half of DXC they want. Shares rose 10 percent when Reuters reported advanced talks to sell the insurance unit to Eldridge Industries, a private investment firm that would fold it into its Zinnia insurance-technology platform, at about $2.4 billion 7.
Software is also what buyers pay for: on October 27, insurance software maker Guidewire agreed to buy hyperexponential, an AI-native underwriting platform, for $1.7 billion 6. An analyst raised that deal on DXC's call; Fernandez replied that sticky customers, recurring revenue and regulatory moats earn "a fantastic valuation by any measure," and said DXC's insurance business has all three 1.
The insurance unit did grow 23 percent last quarter, but a one-time contract modification did the growing 1. The core did not: infrastructure revenue fell 10 percent 1. A sale would leave DXC, worth $2.6 billion, holding the shrinking services businesses around the software 1.
DXC's revenue has fallen year on year for twelve straight quarters
- DXC
- Genpact
Data
| DXC | Genpact | |
|---|---|---|
| Q4 '23 | $3.4 | $1.15 |
| Q1 '24 | $3.39 | $1.13 |
| Q2 '24 | $3.24 | $1.18 |
| Q3 '24 | $3.24 | $1.21 |
| Q4 '24 | $3.23 | $1.25 |
| Q1 '25 | $3.17 | $1.22 |
| Q2 '25 | $3.16 | $1.25 |
| Q3 '25 | $3.16 | $1.29 |
| Q4 '25 | $3.19 | $1.32 |
| Q1 '26 | $3.13 | $1.3 |
| Q2 '26 | $3 | $1.34 |
| Q3 '26 | $3.03 | — |
India's hiring slows while the reward moves to agent builders
For workers, the chain lands on the campus ladder. In India, where technology services anchor white-collar employment, Tyagarajan expects lower incremental hiring and demand shifting to higher skills 2. For shareholders, Genpact's third-quarter report on Thursday is the next clean test of an outsourcer selling agents while forecasting fewer billable tasks 10. Wall Street keeps the stock at Hold, with an average target of $42.91 against a $39.62 share price, so the market is not yet paying for the pivot 5.
The AI is working as advertised: the same work gets done with fewer people. Clients keep the saving, and a business that charged by those hours absorbs it as lost revenue. The reward now goes to whoever gets agents running in production, and building and supervising those agents is the skill to learn now.
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