The National Association of Software and Service Companies (Nasscom) anticipates additional workforce adjustments in the IT sector in the coming months as conventional skills are being reassessed.

The statement from the tech industry group comes after Tata Consultancy Services (TCS) revealed plans to reduce its workforce by more than 12,000 positions in FY26.

“TCS, the largest software exporter in the country with an employee count of 6,13,000, plans to cut approximately 2 percent of its global workforce over phases in FY26, affecting around 12,200 employees,” says CEO and managing director K Krithivasan.

Krithivasan pointed to the growing skill gap and the impracticality of redeploying mid and senior level staff due to evolving technology and client needs as the cause for the layoffs.

In reply, Nasscom stated that the technology sector is at a turning point, with AI and automation becoming central to business operations. Indeed, TCS is a participating member of Nasscom.

Also Read: How Open-Source AI is Setting New Standards in AI Development

"In the coming months, we expect transitions as organizations shift toward delivery models aligned with products, motivated by increasing client demands for agility, innovation, and speed." Nasscom states that this change is expected to transform conventional service delivery models and might prompt some workforce adjustments shortly as traditional skill sets undergo reassessment.

The industry body urged the tech industry, academia and the government to step up and collaborate in bridging this skilling divide, and including talent development as a national and business imperative central to sustaining India's technology leadership in the AI era.

The government, in the days to come, expects the industry and academia to address issues related to skilling and re-skilling.

“Hiring trends will continue to evolve, with increasing demand for deep, specialized expertise. There is no one-size-fits-all solution each enterprise will navigate this transition based on its unique strategic needs,” Nasscom says.

Indian technology industry is already taking significant steps in preparing its talent base for this shift.

Also Read: AI Appreciation Day: From Innovation to Transformation

As of Q4FY25, over 1.5 million professionals have been trained in AI and GenAI skills across levels, Nasscom shared. The advanced AI skilling initiatives have reached more than 95,000 employees in leading listed firms, covering AI-native cloud, embedded AI, and applied intelligence certifications.