Redefining the Workforce: The Rise of Automation and Tech Layoffs in India

There has been drastic ups and down during and after covid pandemic situations for big IT companies in India. Companies like Wipro, TCS, Capgemini, accenture, Aegis adopted work from home during pandemic times and hired more employees in less wage. Once the pandemic situations were over employees were given options to immediately join their office and those who didnt accepted to return were laid offs with different techniques like silent laid offs, forced resignation, and proving bad performance of the employees in compulsary training which was very tough to crack.  In this article we will explore how shift of automation has led to lay offs in India and what are its solutions.

The Shift to Automation

Automation is transforming the way companies operate. Tasks that once required human effort are now handled by machines and software. Companies use AI to streamline processes, analyze data, and even make decisions. While this boosts efficiency and reduces costs, it also leads to job losses.

Many Indian IT companies have embraced automation to stay competitive. They are investing in AI and other technologies to enhance their services. For instance, TCS and Wipro offer AI-driven solutions that help businesses automate tasks and improve productivity. Accenture and Capgemini provide similar services, focusing on cloud computing and cybersecurity.

Impact on the Workforce

A leading global IT services and solutions company, Tata Consultancy Services define an entire gamut of services catering to the needs of all businesses, from software development and maintenance to enterprise solutions; from AI and machine learning to offering new-generation TCS services powering the cutting edge of automation, analytics, and business transformation. Full-service cybersecurity provides comprehensive protection, from threat detection and risk management to data protection, among many others. In addition, TCS provides cloud services, from infrastructure setup to migration and management, facilitating smooth business transitions to the cloud. Consultancy and enterprise solution services offer insight into IT strategy and business transformation for SAP and Oracle.

Presently, TCS has a huge presence in India with close to 150 offices spread across major cities in Mumbai, Bengaluru, Chennai, Hyderabad, and Pune. It has a total workforce of around 600,000 employees globally, a sizeable number-a fair close to 450,000 employees-in India, amidst layoffs within the industry globally. However, due to restructuring and increasing mechanization, about 10,000 employees lost jobs across the globe from 2021 to 2024. Evidence of TCS's concern for the balance between innovation and the stability of its workforce is hereby provided in light of a very fluid period in technological affairs.

Wipro is one of the leading information technology service providers whose main goal is to support companies through different measures that would help them outlive the challenges of the digital world. Its services include IT consulting, application development, and digital transformation, which help companies renew themselves and work in an optimized way. Wipro is at the forefront of AI and data analytics, too, enabling them in providing AI-driven solutions to strengthen decision-making and process automation. Their broad cybersecurity services include threat intelligence, identity management, and security operations to keep businesses safe against emerging threats. Further, Wipro is also efficient in cloud services, providing all services that range from infrastructure setup to cloud-native development. Their BPO services range across industries such as finance and healthcare to retail, covering end-to-end business operation support. It has more than 70 offices across India, with major centers at Bengaluru, Pune, Hyderabad, Chennai, and Delhi NCR, and an employee strength of around 180,000 people in India. However, the company has been forced to take drastic measures such as layoffs due to increases in automation and strategy changes that will affect around 8,000 to 10,000 employees on a global scale from 2021 to 2024.

Accenture, with a strong global presence, had to let go of approximately 25,000 employees. Capgemini also laid off around 15,000 workers. Even Aegis, now known as Startek, had to reduce its workforce by about 2,000 employees due to business restructuring.

A New Era for IT Professionals

Despite the challenges, the IT industry in India is not declining. It is evolving. Companies are not just cutting jobs; they are also creating new roles that require different skills. There is a growing demand for professionals who can work with AI, cybersecurity, and cloud technologies.

For instance, TCS and Wipro are investing in upskilling their employees. They offer training programs to help workers learn new skills in AI, machine learning, and cybersecurity. Accenture and Capgemini are doing the same, focusing on digital transformation and cloud services.

Adapting to the Change

IT professionals in India must adapt to these changes. The rise of automation means that workers need to be flexible and willing to learn new skills. Upskilling and reskilling are essential for staying relevant in the industry.

The government and educational institutions also have a role to play. They need to support the workforce by offering training programs that prepare individuals for the jobs of the future.

Conclusion

The rise of automation in India’s IT industry is redefining the workforce. While it has led to job losses, it has also opened up new opportunities for those willing to adapt. Companies like TCS, Wipro, Accenture, Aegis, and Capgemini are at the forefront of this change. They are not just investing in technology but also in their people.

As the industry continues to evolve, it is crucial for professionals to embrace lifelong learning. By doing so, they can secure their place in the future of the IT industry.