Nasscom flags possible job restructuring amid AI-led shift

Nasscom, the apex body for India’s $268 billion Information Technology (IT) services sector, has forecast workforce rationalisation as the industry moves toward a product-oriented delivery model.

The observation follows recent layoff announcements by Tata Consultancy Services (TCS), the nation’s largest IT services provider.

According to a report by Business Standard, Nasscom in its statement noted that the technology sector is at an “inflection point,” with artificial intelligence and automation becoming central to business operations.

“Over the next several months, we anticipate some transitions as organisations pivot toward product-aligned delivery models, driven by rising client expectations around agility, innovation, and speed. This shift is likely to reshape traditional service delivery frameworks and, in the near term, may lead to some workforce rationalisation as traditional skillsets are re-evaluated,” it said.

Despite short-term challenges, Nasscom expressed confidence in technology's long-term role as a growth driver. It emphasised that each disruptive wave creates new job roles, value chains, and opportunities. Adapting to this change will require continuous skilling, upskilling, and cross-skilling to build a workforce that is resilient and future-ready.

The industry has already made considerable progress in equipping its talent for this transformation. By the end of Q4FY25, more than 1.5 million professionals had been trained in AI and Generative AI across various levels. 

Notably, over 95,000 employees in top-listed companies have undergone advanced AI training, covering areas like AI-native cloud, embedded AI, and applied intelligence certifications, according to Nasscom.

Hiring dynamics are also expected to shift, with growing emphasis on niche, high-level expertise. Nasscom pointed out that “there is no one-size-fits-all solution,” and each company will navigate the change based on its strategic priorities.

However, Nasscom stressed the importance of collective action at this juncture. “Industry, academia, and government must collaborate more deeply to bridge the skill divide and embed talent development as a national and business imperative central to sustaining India’s technology leadership in the AI era.”