Industry leaders believe Tata Consultancy Services' (TCS) recent move to lay off approximately 12,000 people represents a significant shift in how Indian IT firms operate.
Former Tech Mahindra Chief Executive Officer (CEO) CP Gurnani, for instance, believes the move signifies the end of judging IT companies based on staff numbers, and instead advocates for a greater emphasis on outcome-based models powered by artificial intelligence (AI).
Speaking to CNBC-TV18, Gurnani, who is a veteran of the information technology (IT) industry, stated that Indian IT organisations will progressively shift away from being assessed by staff counts.
Gurnani stated that the focus on "Kitne aadmi thhey?" (referring to the iconic line from the Bollywood film Sholay), or assessing the Indian IT business solely on headcount, will end.
“We will have to rewire ourselves to focus on output and outcome-based business models, outcome-based pricing, and more importantly, what it does for business and customers, instead of looking at IT and systems in isolation," he explained.
Addressing concerns about job losses, Gurnani stated that while certain roles may be eliminated as a result of automation and AI integration, new types of professions are emerging. He mentioned that hiring for AI roles is already on the rise.
TCS recently revealed that it will cut its headcount by approximately 2% by 2025, affecting nearly 12,000 employees. The corporation cited shifting technology demands, client expectations, and strategic realignment as the primary reasons for the relocation.
The layoffs are expected to mostly affect individuals in mid-level and senior positions across multiple business areas.
According to the company, the job cuts are part of a long-term strategy to become more agile and focus on emerging technologies such as artificial intelligence, data science, cloud computing, and automation.
