Tata Consultancy Services (TCS) is set to cut roughly 12,200 middle and senior management positions, amounting to 2% of its workforce. While the company attributes the move to “skill mismatches,” industry experts warn it’s an early sign of a broader AI-driven transformation in India’s $283 billion IT services sector.
AI’s Role in Reshaping White-Collar Work
Artificial Intelligence is increasingly being deployed for basic coding, software testing, customer support, and infrastructure management—tasks that once required large teams. Industry analysts predict 400,000 to 500,000 IT jobs could be eliminated over the next two to three years as automation demands new skill sets many current employees lack.
The Vulnerable Middle Layer
According to staffing data, over 430,000 Indian IT professionals with 13–25 years of experience could be at risk. The most vulnerable include people managers without technical expertise, software testers, and infrastructure support staff. Experts say about 70% of the projected layoffs will affect employees with 4–12 years of experience.
Ripple Effect on the Economy
The IT sector contributes over 7% to India’s GDP and sustains millions of direct and indirect jobs, driving demand in housing, automobiles, tourism, and luxury goods. Mass layoffs could dampen consumer spending, delay investments, and weaken economic growth, particularly in urban middle-class markets.
Adapt or Perish: The New Reality
TCS, which had 613,000 employees before the cuts, says it’s “future-ready” by investing in AI, entering new markets, and realigning its workforce model. However, workers facing layoffs—especially mid-career professionals—worry about the difficulty of finding new jobs in a market that increasingly demands advanced digital and AI skills.
Industry at an Inflection Point
Nasscom notes that past technological disruptions mainly affected organizations, but with AI, individuals must take responsibility for re-skilling. Former Tech Mahindra CEO CP Gurnani warns that those unwilling to adapt risk being left behind as automation becomes central to business operations.
