AI Shock Wave Approaches: The Big Four IT Giants in India Halt Hiring Almost Completely, Traditional Outsourcing Model May Come to an End

According to AIbase, the Indian IT outsourcing industry is undergoing a structural transformation driven by artificial intelligence. The latest financial reports show that the hiring activities of India's four major outsourcing giants—TCS (Tata Consultancy Services), Infosys, HCL, and Wipro—have come to a standstill, which aligns closely with the trend of companies accelerating the integration of AI technologies to optimize business processes.

In the past year, these four companies, which used to hire tens of thousands of people each quarter, have only added 3,910 employees in total. Among them, TCS saw a significant reduction of 11,000 employees, HCL reduced by 261 employees, while Infosys and Wipro experienced growth, but at a much slower pace than historical levels. In stark contrast, all companies emphasized the successful application of AI in their financial reports: HCL has 60 key clients using its AI services, Wipro's AI operational tools WINGS and WEGA have seen significant adoption, and TCS successfully accelerated its clients' software development processes through AI.

Currently, these companies are adjusting their talent strategies, focusing on hiring high-salary professionals with AI skills and retraining existing senior employees for technological transitions. This shift from relying on low-cost, junior staff to handle large volumes of tasks toward a high-profit model driven by AI and senior consultants is becoming the new norm in the Indian IT industry. Despite the slowdown in hiring, the market generally holds an optimistic view of this transformation. In addition to Infosys stock rising by 5%, the stocks of the other three companies have remained stable.