Nasscom predicts workforce rationalisation as IT industry transitions

Nasscom expects workforce rationalisation as IT services transition to a product-aligned delivery model, driven by AI and automation. TCS's recent layoffs signal changes in the sector

Nasscom, the industry body representing the over $268 billion IT services industry, has said that it anticipates workforce rationalisation as the industry transitions to a product-aligned delivery model.

 

The statement comes as the country’s largest IT services player, Tata Consultancy Services (TCS), announced layoffs.

 

Nasscom, in a statement, said that the tech industry is at an “inflection point”, as AI and automation move to the very core of how businesses operate.

 

“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.

 

In the long term, however, technology will remain a powerful catalyst for growth. Every wave of disruption brings new roles, new value chains, and new opportunities. As industries evolve, continuous skilling, upskilling, and cross-skilling will be critical to building future-ready, resilient workforces, said Nasscom. 

 

The industry has already taken significant steps in preparing its talent base for this shift. As of Q4FY25, over 1.5 million professionals have been trained in AI and GenAI skills across levels. In particular, advanced AI skilling initiatives have touched more than 95,000 employees in leading listed firms, covering AI-native cloud, embedded AI, and applied intelligence certifications, said the industry body.

 

Hiring trends will continue to evolve, with increasing demand for deep, specialised expertise. There is no one-size-fits-all solution and each enterprise will navigate this transition based on its unique strategic needs.

 

Nasscom, however, highlighted that what is critical now is a shared commitment. "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."