The age of judging Indian IT firms by headcount is coming to an end, warns CP Gurnani, former CEO of Tech Mahindra. In the wake of TCS laying off over 12,000 employees—2% of its global workforce—Gurnani says the industry is shifting to an output-based model where job volume matters less than value delivered.
“The focus on the Sholay dialogue ‘Kitne aadmi the’—that period will be over,” Gurnani told CNBC-TV18, signaling the end of using sheer employee numbers as a benchmark for success in the IT sector. “We will have to rewire ourselves to focus on output and outcome-based business models.”
The shift comes amid a wave of AI-driven restructuring that’s already rewriting roles across the industry. While TCS insists the cuts aren’t directly linked to AI adoption, Gurnani believes the churn is part of a broader realignment. “There is no point in having a traditional HR organization,” he said. “Ultimately, it becomes a data-centric structure with a human touch.”
He sees this as the “humanization of AI”—where automation trims redundant tasks but simultaneously opens space for new roles. “They need more AI engineers, more data scientists, prompt engineers, and people who can collapse multiple functions,” Gurnani added.
Ganesh Natarajan, Executive Chairman of GTT Data Solutions, echoed that outlook with a sharper warning: “Over a million jobs will get redundant,” he said, citing roles in testing, documentation, and basic programming as the first to go.
He urged companies and workers alike to embrace “game-changing AI”—not just transitional upgrades.
“This churn will not stop here,” Natarajan said. “We need to tighten our seatbelts and be prepared for the next two to three years of disruption.”
Even as new opportunities emerge, the pace of change is unforgiving. Industry experts agree that skilling and re-skilling are now critical for survival—not just growth. Academia and corporate training must align quickly, or risk leaving thousands behind in an AI-dominated job market.
The layoffs at TCS are being seen as the opening move in a long period of flux. The message from industry veterans is clear: the IT sector is being fundamentally rewired—and no one can afford to stay static.
