Hyderabad: India’s leading information technology company, Tata Consultancy Services (TCS), has decided to lay off over 12,000 employees. Experts believe this move symbolizes the growing role of artificial intelligence (AI) in India’s $283 billion outsourcing sector.
TCS states that these layoffs are due to skill mismatches, but analysts suggest this signals larger transformations ahead. Over the next two to three years, nearly half a million jobs could be at risk as AI technology reshapes traditional roles.
The sector currently employs around 5.6 million people and contributes over 7% to India’s GDP. While it has long provided employment for Indian engineers, the demand for new technical skills is rising—skills not all employees possess.
Experts say managers lacking technical expertise, as well as employees in software testing and basic technical support, will be the most affected. Those with four to twelve years of experience may face the brunt of this shift. Domestic consumption, tourism, luxury goods, and real estate investments could also feel the impact.
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Major IT firms like TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra, LTI Mindtree, and Cognizant are gradually experiencing this crisis. Experts warn this is just the beginning, with demand for AI-driven efficiency and cutting-edge technical skills set to rise sharply.
