Tata Consultancy Services (TCS), the country’s largest private-sector employer and largest IT services provider, has revealed plans to slash more than 12,000 middle and senior management positions. This reduces the firm’s staff by 2%.
The Mumbai-based software powerhouse employs more than 500,000 IT professionals and is regarded as a barometer of business sentiment in India’s $283 billion software sector. It is the foundation of formal, white-collar work in the country.
TCS claims the decision was made to make the firm “future ready” as it invests in new sectors and employs artificial intelligence at scale amidst seismic challenges to its existing business model.
For decades, companies like TCS have depended on cheap trained personnel to build software for worldwide clients at cheaper rates, but this has been disrupted by AI automating activities and clients seeking more inventive solutions rather than merely cost savings on people.
A number of re-skilling and redeployment activities are underway,” TCS stated in a statement, adding that it will “release colleagues from the organization whose deployment may not be possible.”
People managers are being let go in IT firms while doers are being retained in order to rationalize the workforce and increase efficiencies,” Neeti Sharma, CEO of recruiting Provider TeamLease Digital, told the BBC.
Also Read:
A Visionary Leader’s Journey from Legal to Energy Landscape: Salam Abou Hanna
A Passionate Entrepreneur’s Journey in Tech and Affiliate Marketing: Mukul Kaushik
