Shashi Tharoor Sounds Alarm on Looming ‘IT Apocalypse’ as AI Reshapes Tech Jobs in India

Shashi Tharoor has warned that India’s IT sector is entering a crisis phase, with nearly 5 lakh tech jobs potentially at risk by the end of the fiscal year. After already seeing over 2 lakh layoffs in 2025, Tharoor said job cuts like TCS reducing 3.2% of its workforce — mainly mid- and senior-level roles — are not isolated, but part of a deeper shift in the industry. He noted that global giants like Amazon and Meta have also laid off thousands, signalling a widespread transformation.

The Congress MP explained that the traditional Indian IT model — deploying large numbers of engineers for outsourced development work — is becoming obsolete as companies adopt AI-led automation, RPA, and machine learning. Routine tasks are increasingly automated, reducing demand for large coding teams. At the same time, hiring in India is slowing as clients opt for leaner teams and pay lower salaries to fresh recruits under hybrid work setups.

Tharoor stressed that clients now demand cloud-native solutions, cybersecurity, and generative AI expertise, exposing a widening skill gap in the Indian workforce. He urged an urgent overhaul in engineering education, shifting from outdated curriculum toward AI fluency, domain specialization, and product innovation. Without reimagined skilling and stronger industry-government collaboration, he warned, India’s software success story may face a dramatic downturn.