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AI won't grab a coffee with you

Line chart of the total market capitalisation of a peer set of outsourcing companies, quarterly from December 2020: a peak above $1T in late 2021, then a fall to about $430B in mid-2026.

AI won't go grab a coffee with you, so ☕

In heaven, all they talk about is the sea (Knockin' on Heaven's Door).

Among CEOs of service companies, all they talk about is the empty pipeline.

Over the last 2 quarters, the outsourcing market has dropped [−30.7%] since the start of the year and [−51.1%] from the 2021–2022 peak. Sure, we're seeing some rebound from the lowest point, but most agrees this isn't the bottom yet and the fall will continue. Outsourcing, like all of software development, is under heavy pressure from AI.

I'll be honest, as a CEO I was pretty depressed by this whole state of things, and the uncertainty, that I started thinking in a very simple direction: What AI can't do at all? Right! Drink a coffee (yet).

So my current strategy looks a little old-fashioned: spend the time on real conversations and building network: meet people, drink coffee, find new opportunitines.

Curious where you are on this.Are you feeling the slowdown too, or is it just us? 👇