Indian IT Recasts Talent Strategy as AI Reshapes Operations
Industry body sees companies shifting toward product-aligned delivery models and rethinking traditional workforce structures
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Nasscom has flagged a period of rightsizing in India’s $283 billion IT sector, citing structural shifts as artificial intelligence and automation move to the core of business operations.
The warning from the industry body comes days after Tata Consultancy Services Ltd announced it would cut 12,000 roles, or around 2% of its global workforce, marking one of the biggest trims by an Indian IT major in recent memory.
At an executive council meeting in Bengaluru, Nasscom said traditional delivery and workforce models are giving way to more agile, product-aligned structures, driven by client demands and rapid tech adoption.
With companies pivoting to emerging technologies such as AI, quantum, and agentic platforms, hiring patterns are shifting and headcount is no longer a proxy for growth.
“Traditional skill sets are being re-evaluated, and this may lead to some transitions,” the industry body said.
The sector’s future lies in speed, innovation, and workforce models tuned to new technology stacks—not sheer scale, Nasscom president Rajesh Nambiar said.
