Country Experts are beginning to bear the possibility of such cases coming in the coming time due to the increasing impact of AI and automation amid the announcement of pruning of more than 12,000 employees in Tata Consultancy Services (TCS), the largest IT company of the largest IT company. TCS has announced the trimming of 2 percent of the total number of 6.13 lakh employees i.e. more than 12,000 employees. The move is expected to affect mid and senior level employees. The TCS has described this trimming as part of the strategy to become a ‘future ready -made organization’ in which emphasis is being laid on technology, adoption of AI and restructuring of workforce.
Now IT companies are moving towards more skilled workforce models
According to a PTI report, Tarun Pathak, research director at Counterpoint Research, says that this step of TCS is the result of comprehensive economic pressure, changing expectations of customers and more tight, result-based models of the industry. He said that even though TCS has not described this retrenchment as AI, it is happening at a time when the adoption of automation and AI is having a major impact on the workforce decisions in the entire tech industry. Pathak said, “Indian IT companies are now moving towards more skilled and performance-focused workforce models.”
Cost pressure will be forced to pruning even further
Faisal Kavusa, the founder and chief analyst of Techrch, said the enterprises are now expecting more work from IT service companies using AI. Kavusa said, “In such a situation, cost pressure will force to trim. We should see it as a part of a major developments in AI-run IT where AI agents will quickly replace human agent. ”
Concerns of IT sector employees increased
Niti Sharma, CEO of Teamlies Digital, said that every company is now looking towards AI -led change. He said that companies are investing hugely in increasing the efficiency of their existing and new employees. However, he said that employees who do not fit or increase their ability may have to go out. This decision of TCS has raised the concerns of IT sector employees and it is also seen as a widespread debate on social media. Some users described the possibility of going jobs due to AI and automation as ‘reality’, while some people also feared to increase competition and reduce salary.
With PTI inputs
Latest business news
