The indian IT industry is undergoing a seismic shift. Once a booming sector that provided employment to millions, traditional IT service-based jobs are rapidly disappearing. Engineers in the service-based industry were rarely hired for their technical expertise but rather for their ability to perform repetitive tasks at a lower cost. Now, artificial intelligence (AI) is replacing these roles at an even cheaper cost, with greater speed and efficiency.
This transition is already evident in hiring trends. Clients of major IT service firms are pressuring relationship managers to cut headcount significantly. The numbers tell a stark story—of the 1,20,000 software jobs created in the current financial year, a staggering 1,00,000 have been generated by Global Capability Centers (GCCs), while traditional IT companies have contributed only 20,000. The top five IT giants, including tcs and Infosys, have collectively hired a mere 11,000 people.
The days when IT companies recruited tens of thousands of engineers annually seem to be fading. As AI automates coding and software development tasks, the need for large engineering teams is shrinking. Traditional outsourcing models, which relied on cost arbitrage, are losing relevance in an era where AI-driven automation and low-code/no-code platforms can deliver the same work with fewer people.
Meanwhile, Global Capability Centers (GCCs) are emerging as the dominant force in IT employment. These in-house technology hubs of multinational corporations are driving hiring by focusing on high-value innovation, wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transformation, and strategic IT solutions rather than low-end coding and maintenance work.
The message is clear: the future of IT employment lies not in traditional service-based roles but in GCCs and AI-driven innovations. Engineers and professionals must adapt by upskilling in AI, automation, and advanced software development to stay relevant in this evolving landscape. The IT industry is no longer just about outsourcing—it’s about innovation, efficiency, and leveraging technology to drive business growth.
click and follow Indiaherald WhatsApp channel