“The Sholay Era is Over.”
A powerful quote. An emotional moment.
But let’s pause. Let’s breathe. Let’s think.
The TCS layoff of 12,000 employees—yes, a major moment—has sparked panic, headlines, LinkedIn think-pieces, and watercooler fear. But if we read too quickly, we may miss the real lesson.
This is not an obituary for Indian IT. This is a correction. A clearing. A reset. And for the intelligent leader—it is an invitation.
The Numbers in Context
Let’s zoom out.
- TCS employs over 600,000 people.
- The 12,000 layoff is just 2% of its workforce.
- The employees laid off were largely on the bench for 12–18 months.
- Most are mid-career, unable to match reskilling targets or fit into emerging deals.
Is this brutal? Yes. Is this unusual in a capitalist economy? Not at all.
In fact, global firms like Salesforce, Meta, Amazon, and Google have cut larger proportions of their workforce over the last two years.
What we’re witnessing is not collapse— It’s economic normalization in a post-pandemic, AI-excited, margin-conscious world.
The Real Problem: Structural Lag, Not AI
Blaming AI for layoffs has become fashionable. But let’s separate cause from consequence.
- Most Indian IT firms have not deployed AI at scale in their delivery lifecycle.
- The real trigger is client caution, project deferrals, and tighter budgets.
- Delivery is still labor-intensive. Many teams run on outdated models.
- And yet, the cost base remains inflated—especially with mid-level, unbillable talent.
AI didn’t kill these jobs. Lack of adaptation did.
The Bench Was Never a Strategy. It Was a Luxury.
For two decades, Indian IT firms used the “bench” as a strategic buffer:
- To respond to quick ramp-ups.
- To boast “readiness.”
- To inflate hiring announcements for quarterly confidence.
But in 2025, clients are smarter. They want:
- Pre-vetted, domain-aligned specialists.
- Outcome-based models.
- Automation-first delivery commitments.
A bloated bench today signals inefficiency, not strength. And the markets are watching.
Where Are the Leaders in This Story?
A curious pattern has emerged.
- Mid-level managers are being blamed for not upskilling.
- Engineers are being told to learn GenAI or perish.
- HR is pushing self-learning mandates.
But where are the CXO accountabilities?
- Who forecasted headcount growth without real demand?
- Who ignored workforce signals post-COVID?
- Who let learning become a passive catalog instead of an active transformation?
This isn’t a worker crisis. It’s a leadership lag.
A Polite But Firm Word to On-Site Indian Managers
If you’re an Indian IT professional in an on-site role, this is your moment of deep self-reflection.
Too many on-site managers have gradually turned into mere coordinators—not contributors.
- They attend meetings to prepare for more meetings.
- They give superficial guidelines but avoid deep problem-solving.
- They depend entirely on offshore teams for every deliverable—simple or complex.
- They float through their tenure as “points of contact” while evading technical depth and hands-on ownership.
Let’s be brutally honest: That era is ending.
Clients are watching. Firms are acting. TCS is reportedly letting go of many such roles—not because they dislike these professionals, but because coordination without contribution is a luxury they can no longer afford.
On-site time is not a vacation. It is an opportunity to:
- Understand client business needs firsthand.
- Solve problems others can’t.
- Represent your team with substance, not just slides.
- Prove you belong—not because of where you sit, but because of what you build.
If you continue on this path of surface-level engagement, you risk slipping into irrelevance—first slowly, then suddenly.
But if you rise now, deepen your skills, and produce real value, you can become the bridge between insight and execution—and a force your organization fights to retain.
The choice is still yours.
This is Not Collapse. This is Opportunity.
Let’s get real. The Indian IT industry still has:
- Unmatched scale in delivery.
- Domain depth across insurance, BFSI, healthcare, retail, and manufacturing.
- A massive young, tech-savvy workforce.
- Proven global partnerships.
The firms that succeed next will:
- Shrink to strength.
- Invest in internal AI platforms, not just client demos.
- Redesign workforce models around value creation, not availability.
- Promote managerial innovation, not just developer learning.
The Path Forward: Shrink, Rethink, Rebuild
Let’s replace fear with action.
1. Shrink to Strength
Let go of non-strategic teams. Don’t delay. Keep only what’s adaptable, billable, and learnable.
2. Reimagine the Bench (In-transit Talent Pool)
Turn it into a Value Lab—a space for:
- Experimentation.
- AI tooling.
- Internal IP development.
3. Invest in Managerial Transformation
Upskill managers in:
- Client value storytelling.
- Product mindset.
- Talent repurposing via AI and tools.
4. Build an Internal GenAI Core
Don’t wait for external copilots. Start with:
- Prompt libraries.
- Test automation assistants.
- Release intelligence tools.
Final Word: Not a Collapse. A Culling.
Every industry matures. Every model resets. Every era gives way to the next.
What you’re witnessing is not the end of Indian IT. It is the end of excess.
It is the moment when those who adapt rise above those who accumulate.
“In investing, the riskiest thing is to believe the crowd. In business, the riskiest thing is to become the crowd.” — Inspired by Howard Marks
Call to Leaders
You are not too late. You are right on time.
But only if you can:
- Rethink your cost base.
- Build an AI-native operating rhythm.
- Align every team to client outcomes.
- Lead with truth, not tradition.
The collapse you fear is not outside. It begins when you refuse to change inside.