Meta Cuts Wipro Outsourcing by 25% After AI-Led Restructuring

Meta Platforms has reportedly reduced the amount of IT work it outsources to Wipro Ltd by at least 25% following an artificial intelligence-driven restructuring that resulted in the closure of its digital marketing division. The move reflects Meta’s broader strategy of using AI to streamline operations while reducing reliance on external service providers.

According to a Mint report citing sources familiar with the matter, Wipro now expects to generate around $75 million in annual revenue from Meta, down from approximately $100 million in fiscal year 2026. The decline follows Meta’s decision to discontinue outsourcing digital marketing operations, which had been a significant part of Wipro’s engagement with the technology giant.

Despite the reduction, Meta remains one of Wipro’s largest customers, ranking among the Indian IT services company's top 20 accounts. However, the revenue cut highlights the growing impact of AI adoption on the global outsourcing industry, as technology companies increasingly automate tasks that were previously handled by third-party vendors.

The report also said that other major outsourcing firms have been affected by Meta’s decision. Concentrix Corporation, Teleperformance SE, and Accenture Plc reportedly experienced a reduction in business after Meta scaled back its outsourced digital marketing activities.

Meta has been investing heavily in artificial intelligence to improve efficiency across its business, with automation playing a larger role in customer engagement, content moderation, advertising operations, and internal workflows. As AI capabilities continue to expand, companies are reassessing traditional outsourcing models in favor of automated solutions that can lower costs and improve productivity.

For IT services providers such as Wipro, the shift underscores the need to adapt to changing client demands by expanding AI-related offerings and higher-value digital transformation services. Industry analysts expect AI-driven restructuring to reshape outsourcing contracts across the technology sector, prompting service providers to focus on advanced consulting, AI implementation, and enterprise modernization as businesses accelerate their adoption of artificial intelligence.