AI Will Rewrite, Not End, India's IT Story
The 'deal-rich, job-light' worry misreads the moment. TCS's hiring rebound shows demand and automation can coexist if the sector reskills fast.
Every wave of automation arrives with a familiar prophecy: this time the jobs are gone for good. For India's $250-billion IT services industry, artificial intelligence is the latest such wave, and the shorthand doing the rounds — “deal-rich, job-light” — captures a real anxiety. It also risks misreading the moment.
This is an analysis grounded in the sector's latest results, cited below.
What the Numbers Actually Say
Tata Consultancy Services scaled its AI business to a $2.6 billion annualised run rate last quarter — and, in the same breath, added a net 9,279 employees, its biggest quarterly hiring in over three years. Businessworld's “deal-rich, job-light” framing describes a genuine trend, but TCS's numbers complicate the doom narrative: demand can still support hiring even as AI reshapes how work is delivered.
The Real Shift Is in the Work
AI does not simply subtract jobs; it changes what a job is. Routine coding and testing compress, while demand grows for people who can design AI systems, manage data, and re-engineer client processes. The risk is not mass unemployment so much as a mismatch: too many workers trained for tasks that are automating, too few for the roles that are expanding.
Winners and pressure points
| Under pressure | In demand |
|---|---|
| Routine coding, testing | AI/ML engineering |
| Repetitive support | Data and platform skills |
| Headcount-led growth | Outcome-led transformation |
The Reskilling Imperative
The sector's future depends less on whether AI arrives — it has — than on how fast firms and colleges retrain people for higher-value work. Infosys's plan to hire tens of thousands of freshers signals continued intake, but intake without deep reskilling simply moves the mismatch down the pipeline. The policy and corporate task is to make reskilling routine, not exceptional.
Who It Affects
For employees, the message is to move toward AI-adjacent skills; for firms, to invest in training rather than only in tools; for India, to protect a sector that anchors exports and urban employment. AI will rewrite India's IT story — the ending is still ours to shape. Our report on TCS's latest results details the underlying figures.