Indian IT giants harness AI for growth, cut jobs as productivity soars
BENGALURU, MAHARASHTRA, and NOIDA, INDIA — India’s IT outsourcing giants are leveraging artificial intelligence to drive growth with fewer employees, marking a pivotal shift in the country’s tech workforce strategy.
Companies like HCL Technologies and LTIMindtree noted rising revenues despite shrinking headcounts, as AI tools boost productivity as much as 50% in key operations.
AI drives efficiency, reduces hiring dependency
HCL Technologies achieved 4.8% service revenue growth in fiscal year 2024 while cutting its workforce by 1.8%, demonstrating how AI is enabling non-linear expansion.
Similarly, LTIMindtree reduced staff by 2.9% last quarter, with chief operating officer (COO) Nachiket Deshpande noting that AI-driven productivity gains are decoupling headcount from revenue growth.
HCL says AI is improving efficiency by 25-50% across software development and digital operations, allowing firms to maximize output without proportional hiring increases.
HCL Technologies recently ranked #12 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
Diverging strategies as sector adapts
While some majors like Infosys plan to hire 20,000 freshers this year, others are prioritizing AI-led restructuring. Infosys soared to rank #11 in the OA500 2025.
HCL’s product engineering focus gives it an AI advantage over services-centric rivals, helping secure larger client IT budgets through automation offerings.
The bifurcation highlights an industry in transition. Tata Consultancy Services (TCS), which recently was ranked #8 in the OA500, continues campus hiring but warns of economic headwinds, while HCL forecasts sector-leading 2% to 5% growth through AI adoption.
This divergence may reshape India’s tech employment landscape, balancing job creation with unprecedented productivity gains.
