It was around 1.30am when Rakesh, a 45‑year‑old Oracle employee in Bengaluru, finally shut his laptop after a long day of calls and presentations. A few hours later, his phone rang incessantly; he found his career with the U.S. software giant was over, along with 10,000 other Indian employees, the All India IT Employees Union reported.

India’s IT services, employing 6mn people and contributing about 7% of GDP, have long driven economic growth. But many routine tasks now can be performed by generative AI, and the sector has begun shedding jobs. Infosys, Wipro, TCS and Tech Mahindra have cut staffing by 5‑6% from 2023 levels, and the Nifty IT Index has slipped 18% this year.

Prime Minister Narendra Modi promised AI would create millions of jobs, yet chief economic adviser V Anantha Nageswaran warned that firms may no longer need India’s low‑cost talent. Karnataka’s chief minister DK Shivakumar predicted up to 50% of Bangalore jobs could be cut, while 40% of under‑25 graduates remain unemployed.

Industry leaders argue AI will reshape rather than replace roles. Executives from TCS, Wipro and Persistent Systems stress the need to shift from manpower to expertise, training and integration services. Whether India can pivot to higher‑value work will determine if AI becomes a threat or a driver of new opportunities.