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Discover how the Indian IT sector is evolving with workforce reductions, automation, and shifting business models. Learn about FY24 trends, future predictions, and the industry\’s strategic pivot towards skilled talent and efficiency.
Indian IT Sector’s Hiring Shift: Automation Reduces Workforce
The Indian IT industry is undergoing a revolutionary shift. In FY24, major IT firms reported a net reduction of 2,587 employees in the December quarter, starkly contrasting the 15,033 additions from the previous quarter. While Infosys and HCLTech expanded their teams by a combined 7,725 employees, TCS, Wipro, and Tech Mahindra saw workforce d
What’s Driving Workforce Reductions?
1. Automation Taking Over
The adoption of automation for low- to medium-complexity tasks is reducing dependency on large-scale workforces.
2. Pandemic Overhiring
Aggressive hiring during the pandemic created a surplus of talent, leading to layoffs and attrition now.
3. Focus on Productivity
Firms are shifting from expanding headcount to improving productivity and leveraging skilled professionals for high-demand roles.
Future Workforce Trends in Indian IT
Projected Workforce Cuts in FY24
By the end of FY24, an estimated 12,600 job reductions are expected across top IT firms, marking a drastic change from the 60,000 employees added last year.
Role of Global Capability Centers (GCCs)
GCCs are set to lead workforce growth in FY25, emphasizing value-added services and advanced automation.
Opportunities in the Midst of Change
Despite workforce reductions, demand for skilled professionals is rising, with firms offering higher billing rates for niche expertise. Peter Bendor-Samuel of the Everest Group highlighted how lower headcounts have driven efficiency and innovation across the sector.
Conclusion: A New Era for Indian IT
The Indian IT sector is adapting to a transformative era where automation and skill enhancement take center stage. As companies shift focus from traditional hiring to innovation-driven growth, these changes are reshaping industry dynamics and the employment landscape for years to come.
