The head of India’s largest IT services company has dismissed fears that AI will upend the $300bn outsourcing industry and lead to mass lay-offs, as companies in the sector signal signs of stabilisation after the disruptive launch of ChatGPT.
Tata Consultancy Services chief executive K Krithivasan said he did not expect further large-scale cuts after India’s largest private employer fired nearly 30,000 people, or 5 per cent of its workforce, over the past two quarters.
“There will always be some segment within some small pockets within the company who will not fit in the scheme of things,” Krithivasan told the FT in an interview. “AI is not going to create lay-offs by itself.”
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