India tech giant TCS layoffs herald AI shakeup of $283 billion outsourcing sector - The Hindu

TCS's recent decision to cut over 12,000 jobs marks the beginning of an AI-driven transformation that could eliminate 400,000-500,000 positions from India's $283 billion IT outsourcing sector within two to three years.

India's largest private employer laid off 2% of its workforce, targeting middle and senior management roles due to skill mismatches and AI adoption. The IT sector, which employs 5.67 million people and contributes over 7% to India's GDP, faces unprecedented disruption as artificial intelligence handles tasks previously performed by human workers. Experts warn that employees in testing, infrastructure management, and pure people management roles are most vulnerable to replacement.

• Massive job displacement ahead: 400,000-500,000 IT professionals risk unemployment over the next 2-3 years as AI transforms traditional outsourcing work
• Skills mismatch crisis: 70% of affected workers have 4-12 years experience but lack AI-relevant capabilities demanded by clients
• Economic ripple effects: Job cuts may reduce consumer spending on luxury goods, tourism, and real estate investments across India
• Individual responsibility: Unlike previous tech disruptions, workers must personally adapt and reskill to survive the AI revolution