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Pyramid or diamond? Indian IT companies brace for structural change

Traditionally, IT services firms followed a pyramid structure, with a broad base of fresh graduates supporting scalability and a large bench strength ready for deployment

India IT industry, IT services, automation, artificial intelligence, AI, generative AI, Gen AI, skill transformation, organisational structure, entry-level engineers, pyramid structure, diamond-shaped workforce, mid-tier workforce, IT hiring trends,
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A slow-growth environment over the last three years has also contributed to this. Companies now need more experienced people to work on live projects quickly, according to experts

Avik Das Bangalore

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India’s IT industry – with revenue of about $283 billion this financial year – is perhaps undergoing a tectonic shift in its decades-old organisational structure as automation, artificial intelligence (AI), and generative AI (Gen AI) redefine skillsets and reduce the need for entry-level engineers.
 
Traditionally, IT services firms followed a pyramid structure, with a broad base of fresh graduates supporting scalability and a large bench strength ready for deployment. Now, this model is evolving into a diamond-shaped structure, characterised by fewer entry-level hires and a growing mid-tier workforce with five to thirteen years of experience.
 
Data sourced from specialist staffing