While most sectors are holding steady, the healthcare vertical across giants like Wipro, TCS, and HCL is quietly shrinking. Why? US hospitals and insurers are stuck in a budget squeeze, thanks to regulatory crackdowns and post-pandemic cost pressures. Instead of paying Indian firms for routine IT work, they’re redirecting every spare rupee toward AI; where Indian firms face stiffer global competition. Wipro’s CEO even admitted: budgets are flat, growth is negative in some places. The irony? Indian IT thrived on healthcare outsourcing for decades. Now, that same sector is betting on AI; and looking elsewhere for those services. The real story isn’t just about revenue dips; it’s about a massive shift in how US healthcare spends money. And Indian IT firms? They’re scrambling to catch up. Expect more AI-focused pitches, fewer backend contracts, and a race to prove they can deliver more than just cost savings.