siliconindia | | NOVEMBER 202519to impact more than 12,261 employees over the course of fiscal year 2026, the ripple effects extend far beyond the company.In cities like Pune and Bengaluru, the housing sales dropped by 20 percent in certain tech corridors as job insecurity took prominence. There's been a growing discontent on the ground in the aftermath. The Nascent Information Technology Employees Senate (NITES) filed formal protests, accusing companies of bypassing due process and offering little clarity or support.Additionally, mid-career professionals, many of whom received their training on older systems, find themselves in a state of uncertainty as the confusion persists. Neither hireable in cutting-edge AI roles nor needed in low-end support functions, they've become collateral in a skills mismatch crisis.The Root of the Problem: An Ever-Widening Skills GapThe harsh reality at the center of this turmoil is that, despite over 1.5 million professionals being trained in AI and GenAI, a significant portion of the IT workforce still needs urgent reskilling. But because the training is often too generic, delayed, or misaligned with real-world demands, many aren't adequately prepared for the shift.The Indian IT industry expanded quickly, but not always in a wise way. Millions of jobs were created, most of them in non-core, repetitive tasks. It is now impossible to overlook the cracks as automation eats away at that layer.This imbalance needs to be addressed if India hopes to transition from a services-based economy to one that is focused on products.The Silver Lining: An Opportunity to Rebuild DifferentlyDespite the gloom, there's reason for HOPE! The disruption, though uncomfortable, is essential. It pushes the industry to ask hard but necessary questions: Are we preparing talent for the future or clinging to outdated models? Are we simply executing tasks, or truly innovating to stay relevant in a changing world?To Emerge Stronger, We Must Prioritize Five Key Actions:Real, market-aligned upskilling initiatives: The country needs to go beyond check-the-box training. Programs must focus on AI, data science, cybersecurity, cloud infrastructure, and product thinking­skills that match today's demand curves, not yesterday's job descriptions.Stronger industry-academia linkages: Though India has approximately 1.5 million engineering graduates annually, the employability remains quite low. Deep partnerships between universities, education companies, and employers can fix the pipeline problem.Policy-level labor protections: The lack of clear layoff frameworks, severance norms, or retraining mandates leads to chaos and opacity. Labor laws must evolve to reflect the unique challenges of the knowledge economy.Encourage a product-first mindset: India's Global Capability Centres (GCCs) and startup ecosystem offer a blueprint. These setups focus on value creation, not just cost saving. Scaling that mindset across the board is crucial.R&D as a strategic investment, not a cost: To close the innovation gap, IT majors must allocate real resources to experimentation and IP creation. Without that, adaptability remains wishful thinking.A Turning Point, Not Just a TurndownThis is a wake-up call, not just a downturn. The ability of India's tech workforce to innovate and adapt will determine its future more so than the number of engineers we produce. The layoffs at TCS are not isolated incidents but point to a more serious problem. Many professionals, both new and seasoned, are feeling insecure in India's tech hubs. However, there is still time to make things better by adopting a bold new playbook. We can maintain our lead if the sector concentrates on improving skills, enacting wiser regulations, and nurturing true adaptability. Otherwise, these layoffs might be the beginning. The ability of India's tech workforce to innovate and adapt will determine its future more so than the number of engineers we produce
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