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India accounts for nearly one in every 10 tech professionals worldwide.
| Photo Credit:
REUTERS
Global layoffs at firms such as Oracle, Intel and Microsoft have raised concerns within the tech talent pool. While India may see some job cuts, industry experts say demand for its skilled workforce continues to hold strong, though roles tied to overseas clients, non-core support, and middle management could face pressure.
With India accounting for nearly one in every 10 tech professionals worldwide – about 5.6 million out of a global 50–60 million – the country remains a key talent hub even as global tech firms brace for 2–2.5 lakh layoffs. However, this is likely to impact the US and Western Europe more.
According to Aditya Narayan Mishra, MD and CEO of CIEL HR, globally, IT companies are going through a phase of consolidation at a scale large enough to send ripples across markets. However, this movement is more about firms becoming leaner than mass exits.
“India will certainly feel the tremors, because a large part of our IT revenues still comes from the US. That said, the majority of downsizing will not be here. Layoffs are triggered first at headquarters in developed markets, and their effect trickles down to offshore teams and partner organisations here,” he said.
Perks of large talent pool
Since many roles are tied to client projects, redundancies and automation in the US and Europe can affect delivery teams in India. The risk exists, but India’s cost advantage and large talent pool provide stronger protection than most other emerging markets.
Yugal Joshi, Partner, Everest Group, attributed these layoffs to global tech firms trimming down unwanted roles or to undo overhiring over the last few years.
“Clients of IT services firm are asking for an irrational reduction in cost during renewals and providers have no way out but to commit. To maintain their margin, they are trimming their workforce, but are unclear on how to deliver these, despite claiming significant agent deployments. No region is spared, including India. Many managerial roles are becoming individual contributors. In addition, the non-billable work on senior staff is increasing because the support and secretarial staff are getting aggressively trimmed,” he said.
US legislation
Adding to the uncertainty is the proposed Halting International Relocation of Employment (HIRE) Act in the US Senate, aimed at boosting American jobs by curbing outsourcing.
Neeti Sharma, CEO, TeamLease Digital, explained, “While the proposed HIRE Act wants US companies to hire more people in the US and lower global headcount, all businesses exist to make profits. Good talent at lower costs is always attractive and it will be difficult for these companies to find the right talent in the US and at the cost structures the companies have built for themselves.”
Onshore hiring will be costlier and slower, while offshoring may face compliance hurdles. At the same time, firms cannot afford to lose speed in adopting AI and new technologies, especially when global competition is fierce. Silicon Valley will have to walk a tightrope between policy headwinds and the undeniable need for India’s talent, added Mishra.
Meanwhile, these companies are likely to opt for a variable workforce amid uncertain times. Contractual and gig roles give them the flexibility to scale up or down depending on project demand. For India, this trend means more opportunities for professionals in areas like AI, automation, and cloud, where firms are running pilots or short-term projects.
Published on September 11, 2025
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