Workforce rationalisation on the anvil as traditional skillsets being re-evaluated: Nasscom

New Delhi, July 29
As tech companies like TCS starts to lay off thousands of employees in India amid AI threats, the IT industry’s apex body Nasscom on Monday said that over the next several months, it anticipates some transitions as organisations pivot toward product-aligned delivery models, driven by rising client expectations around agility, innovation, and speed.

The tech industry is at an inflection point, as AI and automation move to the very core of how businesses operate.

“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,” Nasscom said in a statement.

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 the industry body.

The industry has already taken significant steps in preparing its talent base for this shift. As of Q4 FY25, more than 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.

“Hiring trends will continue to evolve, with increasing demand for deep, specialised expertise. There is no one-size-fits-all solution each enterprise will navigate this transition based on its unique strategic needs. What is critical, however, is a shared commitment. Industry, academia, and government must collaborate more deeply to bridge the skilling divide and embed talent development as a national and business imperative central to sustaining India's technology leadership in the AI era,” said Nasscom.

Meanwhile, the IT Ministry is keeping an eye on the TCS decision to lay off more than 12,000 employees. India's largest IT company on Sunday announced its plans to reduce its workforce by 2 per cent or roughly over 12,000 employees in FY26.

The Nascent Information Technology Employees Senate (NITES) has also reportedly filed an official complaint against TCS, alleging that “TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws”.