We don't see hiring going down due to generative AI: TCS CEO K Krithivasan

His comments come at a time when the hiring done by industry has come down significantly. For instance, in FY23 the industry added a total new headcount of 290,000. This has fallen to 60,000 in FY24.

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K Krithivasan, the chief executive officer and managing director of India’s largest IT services firm Tata Consultancy Services (TCS), said that it is too early to say that generative AI is impacting hiring in the IT industry.

He said that it is too early to decouple demand and hiring. “We are not decoupled. What is happening is that the companies over-hired and as demand started to stabilise we started using the existing workforce,” explained Krithivasan. He was talking at the 32nd Nasscom Technology Leadership Forum.

His comments come at a time when the hiring done by the industry has come down significantly. For instance, in FY23 the industry added a total new headcount of 290,000. This has fallen to 60,000 in FY24.

When asked if generative AI will cause displacements, he said: “Generative AI in most places is being used for experimentations and PoCs (proof of concepts); it is too early to call it mainstream or say it is causing reduction in workforce. That’s not true.”

Krithivasan added that every new technology has initially caused displacement and disruptions. “Every technology there is some displacement and disruption. But eventually we will be able to do more work,” he said.

He, however, added that what will change is the people that are being hired, the training that is imparted.

“Rather generative AI is increasing the productivity of the middle group of employees. We will require critical thinking. Our ability to do strategic planning, creative thinking will not go away. We will need more people doing this,” he added.

On the demand environment, Krithivasan said that he was cautiously optimistic in the medium to short-term. “Next year will be better than this year. The reason being is that some of the large verticals will start seeing green shoots. Hence the optimism,” he said.

Krithivasan added that the company is firm in its policy to get its employees back in office. He said that working from home/hybrid model is not the right way to grow both individually as well as for organizations. “As an organization, we value collaboration and camaraderie and this cannot be achieved through Zoom calls or other online mediums. Also, as many as 30-40 per cent of our associates have joined us since the pandemic and if they don't come to the office, how do they learn these values and organizational cultures?” he said.