AI Hollows India’s IT Pyramid

Generative AI is automating junior developer and tester work, collapsing the entry‑level ‘pyramid’ that underpinned India’s IT outsourcing model. Fresh‑grad intake dropped 70% in a year and workforce age is rising, signaling a structural shift from mass junior hiring to leaner teams. — This challenges services‑led development and youth‑employment assumptions in the world’s largest labor‑market entrant, with knock‑on effects for global outsourcing and skilling policy.

Sources

AI Push Drives Record Job Cuts at Top India Private Employer TCS

msmash 2025.10.10 90% relevant

TCS cut 19,755 jobs in the Sept. quarter, citing a rapid shift toward AI; headcount fell below 600,000 and the firm booked ₹11.35B in severance—direct, large-scale evidence that generative AI is compressing the entry-level pyramid in India’s IT services sector.

AI Triggers 70% Collapse in Fresh Graduate Hiring at India's IT Giants That Employ 5.4 Million

msmash 2025.09.15 100% relevant

Hiring at India’s top four IT exporters fell from 225,000 to 60,000 (FY23→FY24); TCS/Infosys cut 38,000 jobs; estimates that 30–40% of junior tasks are automatable; Infosys’s under‑30 share projected to drop to 53%.