TCS Layoffs Highlight AI Impact on Outsourcing Industry
Tata Consultancy Services (TCS), one of India’s largest IT outsourcing firms, has announced plans to cut over 12,000 jobs. This is the biggest layoff ever by the company and signals a significant change driven by artificial intelligence in the $283 billion outsourcing sector.
Though TCS states the layoffs are mainly due to skill mismatches rather than direct AI-related productivity gains, many experts see this as the start of a wider shift. About 2% of TCS’s workforce, focusing on middle and senior management roles, will be affected. Similar cuts are expected at other major firms like Infosys, HCLTech, Wipro, Tech Mahindra, and Cognizant.
Why Are These Changes Happening?
The Indian IT outsourcing industry employs 5.67 million people and contributes over 7% to the country’s GDP. It has long been a path for engineers and tech professionals to grow their careers.
Now, AI is automating many tasks previously done by humans — from coding and testing to customer support. This shift demands new skills that many current workers don’t have yet, especially those in roles like manual testing, quality assurance, and basic tech support.
Who Is Most at Risk?
- People managers with limited technical expertise
- Testing and quality assurance staff
- Infrastructure management and basic tech support employees
Industry estimates warn that 400,000 to 500,000 professionals in India could lose their jobs in the next two to three years, especially those with 4 to 12 years of experience.
What Does This Mean for Customer Support Professionals?
If you work in customer support, the rise of AI means your role could change significantly. AI tools are increasingly handling routine queries and support tasks, which reduces demand for traditional support roles.
To stay relevant, reskilling and learning new technologies is essential. Upskilling in AI-related tools and automation can open new opportunities and help protect your career.
For those interested, resources like Complete AI Training’s courses for various job roles offer practical ways to build these skills.
What Is TCS Doing?
TCS plans to invest in new technologies, expand into new markets, and scale AI deployments both for clients and internal operations. However, the company hasn’t specified how many layoffs are directly linked to AI or how they intend to redeploy affected employees.
Challenges Ahead
The layoffs have caused concern among employees, especially mid-career professionals facing a tougher job market. Some report stricter company policies and reduced bonuses recently.
The outsourcing sector is also dealing with slower revenue growth due to inflation, geopolitical uncertainties, and client demands for cost efficiency. Clients expect IT firms to deliver more productivity with fewer employees, accelerating AI adoption.
What Can You Do?
As AI changes the outsourcing landscape, adapting your skills is key to job security. Focus on learning automation tools, AI basics, and advanced customer support technologies.
Explore practical training options such as Complete AI Training’s latest AI courses to prepare for new roles in this evolving environment.
Embracing continuous learning will help you stay ahead and open doors to new career paths in customer support and beyond.
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