Congress MP Shashi Tharoor has raised a serious alarm over the state of India’s IT sector, warning that nearly 5 lakh tech jobs could be at risk by the end of this fiscal year. Writing in The Hindu under the title “India’s IT dream is at a crossroads,” Tharoor said the country’s once-thriving software industry is facing an “IT apocalypse” as automation, AI, and global economic slowdown reshape its traditional business model.
According to Tharoor, India’s software export-based model — which relied on staffing engineers for global projects and earning margins through currency arbitrage — is now becoming obsolete.
He pointed out that leading Indian companies such as TCS have already begun targeted layoffs (cutting around 3.2% of its workforce) in mid- and senior-level roles, while tech giants like Amazon and Meta have also trimmed tens of thousands of jobs globally.
Tharoor explained that AI-led automation, machine learning, and robotic process automation (RPA) are drastically reducing the need for large coding teams. Routine technical work has become automated, forcing IT firms to focus on high-value innovation, AI integration, and domain-specific expertise instead of manpower-heavy services.
He noted that international clients now prefer smaller, highly skilled teams that can deliver faster and more specialized solutions like cloud-native architectures, cybersecurity systems, and generative AI frameworks.
This shift has exposed a major skill gap among India’s IT workforce.
Tharoor also emphasized the need for a complete overhaul of India’s engineering education, urging the government to promote AI, blockchain, cloud computing, and product design training to prepare graduates for the new digital era.
