Indian IT Giants Reshape Strategies Amid AI Disruption
India’s top IT companies are undergoing a rapid transformation as artificial intelligence (AI) reshapes global technology services. Infosys is spearheading the shift, rolling out hundreds of AI tools, securing new European contracts, and opening a state-of-the-art AI, cybersecurity, and space tech center in Hubballi. The new hub employs over 1,000 professionals and collaborates with local universities, signaling a deeper focus on regional innovation.
Industry leaders TCS, Wipro, HCLTech, and Hexaware are also embedding AI across operations. While AI adoption isn’t the sole reason for workforce changes, it is accelerating a move toward leaner, outcome-driven delivery models.
Workforce Restructuring
In a landmark move, TCS announced its largest-ever layoff—12,000 roles, primarily mid-to-senior level positions deemed skill-mismatched. The sector has seen entry-level hiring for repetitive roles like coding, testing, and customer support drop by 30–50%. FY2023–24 saw only 60,000 net new IT jobs, the lowest in a decade, though FY25 may see a rebound to 126,000—albeit in new, high-skill profiles.
BPO operations are also shifting, with AI tools now automating up to 70% of frontline tasks, creating demand for roles in AI training, data annotation, and customer experience design.
Upskilling & Emerging Roles
Infosys has launched a massive AI-first training program for 300,000 employees, while Nasscom reports 95,000 professionals have earned certifications in AI-native cloud and embedded AI. Demand is rising for AI engineers, machine learning experts, and AI ethics specialists. Global Capability Centers are projected to create 340,000–380,000 digital-first jobs in the coming quarters. Former HCL CEO Vineet Nayar warns that routine roles could shrink by 70%, calling for ethical upskilling over blanket layoffs.
Startup Momentum
India’s AI startup ecosystem is also gaining ground. Sarvam AI is building Indian language large language models (LLMs) in collaboration with UIDAI and Microsoft, aiming for a sovereign AI framework. Neysa AI has raised $50 million to provide GPU cloud and AI infrastructure services. Corporates like Wipro and Reliance Jio (through JioBrain) are setting up AI Centers of Excellence to accelerate enterprise adoption.
With rapid AI deployment, significant workforce restructuring, and the rise of AI-native startups, India’s IT sector is at a turning point—balancing technological innovation with the urgent need for large-scale reskilling and ethical transformation.
