Following TCS’ announcement of laying off 2% or 12,000 of its workforce, IT industry body Nasscom said more workforce transitions are likely across the sector as companies shift to AI-powered, product-centric delivery models.
In a statement issued on Monday, the association said that as enterprises accelerate their adoption of artificial intelligence, legacy delivery structures, and the roles tied to them, are being reassessed. In the near term, this evolution could lead to further job rationalisation, particularly in functions that are no longer aligned with the emerging digital-first mandates.
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.”
While acknowledging the short-term disruption, Nasscom underscored that such realignments are a natural outcome of technological change. Historically, every disruptive wave, from cloud to mobile, has also created new employment opportunities and value ecosystems. AI, it said, will be no different.
“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. The industry body reiterated the need for large-scale skilling, upskilling and cross-skilling initiatives to ensure the tech talent pool remains globally competitive.
Upskilling and collaboration
It called for deeper cooperation between the industry, academic institutions and government to scale talent development. “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.
Nasscom also pointed to early signs of progress. By the fourth quarter of FY25, over 1.5 million professionals had undergone training in AI and GenAI-related technologies, and more than 95,000 employees from listed tech firms had completed advanced certifications in applied AI fields.
Following TCS’ move, industry experts say this could be an early sign of more widespread shifts, as clients push vendors to deliver greater innovation at speed, and increasingly link pricing to outcomes rather than effort.
