IT Job Cuts: Nasscom Calls TCS Layoffs a Transition, Not Crisis; AI vs Human Workforce Debate Intensifies

Tata Consultancy Services (TCS) is reducing its workforce by over 12,000 employees. Nasscom, the leading body for the IT industry, offers a broader perspective on this development. They view it as a transition rather than a crisis.

TCS Layoffs: Nasscom View IT Job Cuts As Transition Instead of Crisis

According to Nasscom, the job cuts should be viewed in the context of broader Industry 4.0 trends-artificial intelligence (AI), automation, and shifting client expectations are transforming the way IT services are delivered. While acknowledging the short-term impact on TCS employees, Nasscom stresses that such disruption also brings the emergence of new roles and opportunities. The focus, it suggests, should be on building a resilient workforce capable of navigating these shifts.

"Every wave of disruption brings new roles, new value chains, and new opportunities," the IT body highlighted.

Nasscom believes that by Q4 FY25, over 1.5 million professionals in India will have been trained in AI and GenAI skills. Among them, more than 95,000 have achieved advanced certifications in cloud-native AI and applied intelligence.

Nasscom emphasises the need for collaboration among industry players, academic institutions, and the government. They advocate for skilling, upskilling, and cross-skilling to become national priorities. This approach aims to ensure India's continued leadership in the global AI race.

AI VS Human Workforce: TCS Layoffs Under Scrutiny; Is India's IT Sector at Risk?

Concerns about how layoffs are being managed remain prevalent. The IT Ministry is keeping an eye on TCS' plans. Meanwhile, NITES has filed a complaint citing labour law violations. Despite these concerns, Nasscom's message is clear, 'focus on skilling rather than fear to shape India's tech future'.

The shift towards product-aligned, AI-driven frameworks is underway in the tech sector. Nasscom highlights that every disruption brings new value chains and roles. The key lies in preparing a future-ready workforce through targeted skilling initiatives.

Nasscom's optimistic long-term view suggests that the industry is not just anticipating change but actively preparing for it. The emphasis on training professionals in advanced AI skills reflects this proactive approach.