After TCS announced that it was laying off 2% of its staff, or 12,000 people, the IT industry group Nasscom stated that as businesses move to AI-powered, product-centric delivery models, more workforce changes are probably going to occur overall.
The group said in a statement on Monday that traditional delivery structures and the jobs associated with them are being reevaluated as businesses speed up their use of artificial intelligence. Further employment rationalization may result from this transition in the near future, especially for jobs that are no longer in line with the new digital-first demands.
Industry transformation
“As businesses reorient to meet evolving client demands for speed, agility and innovation, the industry is witnessing a transformation that is redefining how technology services are conceived, delivered and consumed,” Nasscom said. “Over the coming months, this may result in further shifts in workforce requirements.”
Nasscom emphasized that these realignments are a normal consequence of technology progress, even as it acknowledged the temporary disturbance. Every disruptive wave in history, from mobile to cloud, has also produced new value ecosystems and job possibilities. AI won’t be any different, it claimed.
“Every wave of disruption brings new roles, new value chains, and new opportunities. The focus must now be on preparing the workforce for what’s next,” the statement added. To maintain the IT talent pool’s competitiveness on a worldwide scale, the industry association reaffirmed the necessity of extensive skilling, upskilling, and cross-skilling programs.
Upskilling and collaboration
In order to expand talent development, it urged for closer collaboration between the government, academic institutions, and industry.“What is critical now is a shared commitment. Talent building must be viewed as a national and business imperative to sustain India’s global leadership in the AI era,” it said.
Early indications of improvement were also mentioned by Nasscom. More than 95,000 workers from listed tech companies had earned advanced certifications in applied AI disciplines by the fourth quarter of FY25, and more than 1.5 million professionals had received training in AI and GenAI-related technologies.
According to industry analysts, TCS’ action may be a precursor to more significant changes as customers pressure suppliers to produce more innovation more quickly and more frequently tie price to results rather than effort.
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