Nasscom flags rightsizing as AI shifts hit Indian IT

India’s $283 billion technology sector is undergoing a structural transformation as artificial intelligence and automation become foundational to enterprise operations, Nasscom said on Tuesday.

Following Tata Consultancy Services Ltd’s decision to trim 12,000 mid and senior-level jobs globally, about 2% of its workforce, the industry body noted that companies are shifting toward product-aligned delivery models and rethinking traditional workforce structures.

At its Executive Council meeting in Bengaluru, Nasscom emphasized that this transition is rooted in rising client expectations for speed, agility, and innovation.

As firms increasingly adopt technologies such as AI, quantum computing, and agentic systems, talent models are evolving, and workforce growth is becoming less directly linked to business expansion.

“Traditional skill sets are being re-evaluated, and this may lead to some transitions,” Nasscom said, adding that organizations will respond to these shifts based on their unique operational needs.