Finshots Daily Is this the end of the Indian IT Industry?
10 snips
Aug 1, 2025 The podcast dives into the recent wave of layoffs in the Indian IT sector, spotlighting major players like Tata Consultancy Services and HCL. It discusses how Global Capability Centers are reshaping the landscape while automation and global competition pose challenges. Additionally, the conversation spotlights the success of a product-led model, particularly Zoho’s rise, emphasizing the crucial need for Indian IT firms to shift from traditional outsourcing to innovative product development.
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IT Layoffs Signal Industry Stress
- Indian IT firms like TCS and HCL are announcing layoffs and salary freezes amid flat revenues.
- This signals stress in a legacy outsourcing model traditionally known for growth and stability.
AI Disrupts Mid-Level Roles
- AI automation is replacing many mid-level tech and operations roles by performing tasks cheaper and faster.
- This fundamentally reduces the need for human effort in traditional IT service roles.
GCCs Challenge Outsourcing
- Multinational firms are increasingly setting up their own global capability centers (GCCs) in India.
- GCCs offer cost savings, control over tools, and data security, challenging traditional outsourcing firms.