Global tech markets plunged into chaos following Anthropic’s January 30, 2026, launch of 11 open-source plug-ins for its Claude Cowork agent, igniting fears that agentic AI could obliterate traditional SaaS models and disrupt India’s IT services giants. Indian IT stocks like Infosys (down 8%), TCS (6.46%), HCLTech (5.76%), Wipro, and Tech Mahindra cratered, erasing over ₹5.7 lakh crore in market cap as the Nifty IT index dropped 19% in eight sessions, its worst since 2020.

The Trigger: Claude Cowork’s Game-Changing Plug-ins

Anthropic, founded in 2021 by ex-OpenAI leaders Dario and Daniela Amodei, shifted AI from chatbots to autonomous “coworkers.” These no-code plug-ins bundle skills, connectors, and sub-agents for enterprise roles, autonomously planning, executing, and validating multi-step tasks like document processing, cross-verification, and adaptive strategies. Key offerings target:

This “vibe coding” lets users describe intent in plain English, bypassing specialised software from Salesforce, ServiceNow, or Adobe—threatening recurring subscriptions that fueled SaaS profits.

Market Carnage: Wall Street to Dalal Street

• US: Nasdaq fell 1.4-2.4%; Goldman Sachs software basket 6%; S&P 500 -0.84%. Adobe (-7.31%), Cognizant (-10.14%), Thomson Reuters (-15.67%), Gartner (-20.87%), Equifax (-12.11%), ServiceNow/Salesforce (~7%) shed $ 300 B in market cap. Even Nvidia/Meta dipped 2-3%.

• India: Infosys ADR -5.56% (Nasdaq); TCS mcap below ₹10 lakh crore (2020 levels); Nifty IT -3-6% daily. Sensex dragged 100+ points.

• Termed ‘SaaSpocalypse’: Jefferies warns AI agents compress software categories into one interface, turning tools into utilities.

Palantir’s CTO noted AI slashing SAP migrations from years to weeks, amplifying panic over billable hours in legal research, compliance, and due diligence, bread-and-butter for Indian IT juniors.

Indian IT Sector: Existential Threat or Overreaction?

India’s IT behemoths thrived on outsourcing data processing, analysis, and support—now AI-vulnerable. Economic Survey 2025-26 flagged risks: concentrated AI data/compute erodes India’s edge if adaptation lags. Mustafa Suleyman-like warnings predict 12-month white-collar hits (lawyers, accountants, coders).

Bear Case: Agentic AI automates L1 support, reporting, testing—hollowing low-end services; clients rethink headcount-heavy models.

Bull Rebuttals:

• JPMorgan sees “compelling value” in Infosys/TCS; correction temporary.
• Cognizant CEO Ravi Kumar: Enterprises need integrators for AI-human bridges; no “plug-and-play” magic.
• Zoho’s Sridhar Vembu: Domain expertise trumps AI; SaaS woes predated agents.
• Happiest Minds’ Ashok Soota: Disruption expands IT roles in transformation.
• Experts (Pareekh Jain, Prasad Valavade): Incremental impact; humans essential for governance, legacy integration, high-stakes decisions. Legal AI needs oversight (Adv. Varun Singh).

Broader Implications and Road Ahead

Salesforce’s 1,000 AI-driven layoffs signal restructuring. Anthropic’s Dario Amodei reassures startups: “Claude powers AI-native firms.” Indian firms pivot to AI orchestration, but face pricing pressure (fixed-fee vs. hours). JPMorgan urges buying the dip; long-term, IT survives as AI embedders.

As of February 17, 2026, markets stabilise slightly, but the AI shift, from assistant to executor, reshapes software economics. Indian IT must accelerate: reskill, embed AI in processes, or risk obsolescence. The ‘SaaSpocalypse’ may be hype, but evolution is inevitable.