The Information Technology (IT) and Information Technology Responsive Services (ITES) sector employs over 5 million people, or more than 10%, of professionals worldwide, in the IT sector in India. While this sector continues to promise employment possibilities, the emergence of new age technologies such as artificial intelligence (AI), machine learning (ML), automation and quantum computing means that many roles are changing, primarily due to the changing dynamics and requirements of the industry.
Over the past few years, both key and minor components of the IT industry have decided in favor of heavy investments to establish AI preparation. The vibe coding aspect is gradually becoming a town talk, with several organizations and industry leaders advocating for AI-driven automated coding. The roles of Prompt Engineer, AI Researcher and others are becoming the focus of these global organizations.
At the same time, there are numerous layoffs being made by both major engineers and other companies. Some of these companies said the layoffs were the result of “internal restructuring” and “restructuring efforts,” while others announced that they were highlighting “strategic changes in AI products and services.” What this essentially means is that the IT & ITES sector is adapting to living in a world where AI is quickly becoming the norm for normalization and scalability. This also means that today's learners need to concentrate on these aspects and ensure employment potential in the coming years.
Impact of technology layoffs
The emergence of AI as one of the crucial technologies of the 21st century has led to much debate and debate. However, the MOOT point is that AI is transforming digital technology and how it defines work.
In the IT & ITES sector, the scope of work has been essentially changed and expanded due to technology similar to AI. Technology layoffs made by globally renowned technology majors such as Microsoft, Google, Salesforce and Meta highlight this shift at a fundamental level. If requirements are changing dramatically, this trend calls for a wide range of high skills in ERA-friendly technologies that Indian technology majors have recently performed. At the same time, pondering an industry full of millions of professionals remains extremely unthinkable. That means the push must come from all stakeholders, government, public and private sectors.
Unfortunately, the direct impact of layoffs made in high-tech majors is loss of employment and financial challenges at the individual level. But at the same time, learners need to understand that this provides unique opportunities to skill with technology suitable for the era, such as AI, ML, and other, and advances innovation. Industry leaders have often spoken out over the past few years with some general engagement that only a small portion of the current workforce remains well-known about them. To operate within the IT & ITES industry, which relies on functional new age technologies that make tasks easier to repeat and change the overall role of the job, employees need to seek strategically advanced skills with these technologies and risk being irrelevant over time.
How can learners reorganize themselves?
There is little doubt about which technology learners must prioritize. The decade approaching the ongoing decade is highlighted for innovation in digital technology. From AI & ML to quantum computing, edge computing and blockchain, you'll see the growth spectrum of the IT & ITES industry. This means that some older roles in coding or testing will soon be deprecated. This is where today's tech learners need to prioritize, especially considering their continued efforts to create talent funnels with the right knowledge of digital technologies in the new era.
For beginners, the learning process should currently match what the industry needs in the future. Much of the education policy in technology remains decades old, focusing on creating software engineers to match the narrative of older industry. However, as the industry focuses on new ages of technology, education policies in India and around the world need to undergo the necessary changes.
When education policies change its outlook, the establishment of a talent funnel is automatically streamlined. Large tech companies already have a future focus in the public domain, but in line with it, learners, educators and government partners must launch along with the private sector itself.
Looking ahead
The next few years will be important in rethinking the IT & ITES sector, and technology layoffs are unfortunately expected to continue. As large engineers and other companies focus on these new age technologies, newer roles will be created in this space with minimal participation from trained professionals. At this point, high-end skills are becoming the main differentiator and catalyst for professional technical careers. By the next decade, new technologies will be fully integrated into the enterprise. Individual experts need to adapt to thrive in a new era.
(Born in remote locations in Madurai, Tamil Nadu, Arun Prakash is the founder and CEO of Guvi Geek Networks, an HCL group company and an incubated Edtech platform for IIT-Madras & IIM-Ahmedabad.
Published – August 7, 2025 08:09 PM IST
