Capgemini shares drop over 5% after a $3.3B WNS buyout as Morgan Stanley warns Gen AI could disrupt the BPO market, reduce revenues, and limit growth.

• Analysts fear Gen AI may automate BPO, cutting jobs and revenues, and exposing incumbents to new competition.
• WNS acquisition deemed too small for Capgemini’s transformation, draining financial resources for years.
• Capgemini lags in STOXX 600 as investors doubt WNS deal’s value amid AI, driven industry shifts.