In recent weeks, several top IT companies in India have reduced their workforce, particularly mid-level employees. The industry is undergoing a structural shift in line with global trends, with major tech firms streamlining resources, reallocating assets, and closing divisions that no longer align with strategic goals. Experts believe AI is disrupting the traditional workforce pyramid, replacing broad-based hiring with leaner, specialised structures to boost revenues. The adoption of AI, automation, and cloud-based architectures drives this transformation.
Despite these changes, strong outsourcing demand from Europe has helped IT firms sustain revenue growth. Europe is working to strengthen its tech sovereignty, currently reliant on the United States. The UK, Ireland, and Benelux nations are expanding capabilities in generative AI, cloud, digital, and cybersecurity. Europe accounts for 25–30% of the global market for India’s top-tier IT firms, compared to 40–50% from the US. With AI-driven automation reshaping business models, companies are focusing on digital transformation and upskilling, making hiring more selective and aligned with core priorities.
Meanwhile, India’s textile, gems, and jewellery sectors face challenges from a 25% tariff. However, a Bilateral Trade Agreement with the US is under negotiation. Pharmaceutical exports remain unaffected, as Indian products are vital to the US Medicare system and competitively priced.
Also Read:
The Catalyst of Market Transformation: Zoubaida Zorkot’s Vision for Saudi Arabia’s Future
Pioneering Innovative and Customer-centric Financial Services: Jumana Saeh
About Author
