Whalesbook
AI's Job Impact in India
Global tech firms are restructuring their workforces in India, leading to significant job cuts. Tata Consultancy Services (TCS) recently reported a loss of nearly 31,000 employees, and Wipro Ltd. reduced its headcount by over 3,500. AI agents are increasingly handling repetitive tasks like coding and customer support more efficiently than humans. This shift makes many roles created during the pandemic's rapid growth phase redundant.
India's Push for New Skills
Experts see this as a structural change in the job market, not just a simple slowdown. Mid-management roles focused on coordination are being reduced, following a global trend toward flatter company structures. Demand for maintaining old systems and basic analytics is also falling. India seems better prepared, however, thanks to industry-wide reskilling efforts. Nasscom reports that over two million professionals have gained new AI skills, many focusing on advanced areas to build 'Human + AI' teams.
The Premium on New Skills
Mercer's data shows India's top executives are prioritizing AI transformation and redesigning work for human-machine teamwork. A 'skills-first' strategy, used by nearly 74% of C-suite leaders in India, is now key, making general talent shortages less of a concern. Companies are highly selective, focusing job demand on new skills like AI, cloud, and platform engineering. Specialized roles like Generative AI engineers and ML operations professionals are in high demand. These niche skills command higher pay, with compensation premiums of 20-40%, and hiring for these complex positions now takes 75-90 days.
Global Centers Boost Hiring
The growth of Global Capabilities Centres (GCCs) in India is helping absorb tech talent, particularly in mid-level roles where hiring has risen from 40% to 60-65%. Although entry-level hiring has declined, GCCs are building R&D centers and AI capabilities in major cities like Bengaluru and Delhi NCR. This creates demand for advanced tech expertise and leadership roles needed to drive AI-led changes.