TCS job cuts mark turning point for India's $283 billion tech services
TCS, India's largest private employer, described the layoffs—about two percent of its workforce—as the result of skill mismatches rather than AI-related productivity gains. Still, industry analysts say the move, which affects roughly 12,200 mid- and senior-level roles, marks the most significant job cut in the company's history and foreshadows similar actions across the sector.
AI is increasingly handling tasks like basic coding, manual testing, and customer support—functions that have long formed the backbone of India's IT services model. The industry employs 5.67 million people and contributes over seven percent to India's GDP, with far-reaching economic impact through associated job creation and consumer spending.
"We are in the midst of a massive transition that will transform white-collar work as we know it," said Ray Wang, founder of Constellation Research.
Experts say the most vulnerable employees include people managers with little technical expertise, software testers, and infrastructure management staff responsible for basic tech support. Gaurav Vasu of UnearthInsight estimates that between 400,000 and 500,000 professionals, 70 percent of them with four to 12 years' experience, could be laid off in the next two to three years.
"This fear may hurt consumer demand for tourism, luxury shopping, and delay big-ticket investments like real estate," Vasu warned.
The middle layer is particularly exposed. According to staffing firm Xpheno, TCS and peers such as Infosys, HCLTech, Tech Mahindra, Wipro, LTIMindtree, and Cognizant together employ over 430,000 workers with 13 to 25 years' experience. "At the moment, they may appear like the big fat middle layer," said Xpheno co-founder Kamal Karanth.
Cost optimisation is driving the trend, said Jefferies analyst Akshat Agarwal, as clients demand productivity gains, often achievable with AI, allowing the same work to be done with fewer staff.
TCS, which had over 613,000 employees before the cuts, has said it is preparing to be "future-ready" by investing in emerging technologies, expanding into new markets, and deploying AI at scale for clients and internally. It did not say how many job losses were AI-related or why redeployment was not possible.
For some employees, the layoffs have been devastating. "It is very difficult for people my age to get new jobs," said a 45-year-old TCS worker in Kolkata. Others cited declining performance bonuses, stricter "bench" policies limiting time without a project, and low morale.
The outsourcing industry, which has powered India's middle class since the 1990s, is facing weaker revenue growth as global clients delay spending and demand tighter cost control. Nasscom, the industry body, said AI and automation are now "at the very core of how businesses operate."
"With AI, for the first time, the onus is on the individual to reinvent or re-skill themselves," said former Tech Mahindra CEO CP Gurnani.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
If You'd Invested $1,000 in Berkshire Hathaway Stock 5 Years Ago, Here's How Much You'd Have Today
Key Points Like all funds and portfolios, Berkshire Hathaway has underperformed from time to time. Warren Buffett's quality-oriented approach to buying and holding stocks has paid off of late. 10 stocks we like better than Berkshire Hathaway › Artificial-intelligence-related tech stocks like Nvidia and Palantir have dominated headlines and led the marketwide bullish charge over the past five years. But, not every market-beating stock has been an AI technology name -- or even a growth name -- during this stretch. Warren Buffett and his team have proven their mettle once again, leading value-oriented Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to a market-beating performance of its own since the middle of 2020. Back in fighting form If you had you invested $1,000 in Berkshire Hathaway shares in early August of 2020, as I write this on Aug. 10, you'd be sitting on $2,221. That's an annualized growth rate of 17.3%, outpacing the S&P 500 's (SNPINDEX: ^GSPC) average annual growth pace of 13.8%, or 15.5% when factoring in reinvested dividends. BRK.A data by YCharts Making this five-year run even more impressive is that Berkshire has performed relatively poorly since May. That's not only when Buffett announced his end-of-year retirement, but also when investors began shedding their defensive value stocks that Buffett's conglomerate holds so they could plow back into growth-oriented technology names. It's still well ahead despite the headwind. There's also some vindication in this market-beating performance. You may recall that Berkshire's persistent underperformance for several years prior to 2021's rekindled leadership was prompting criticisms and questions of his old-school stock-picking approach. The past three years have reminded everyone that patience pays off when you prioritize owning quality businesses rather than chasing growth. Buying and holding quality is always a sound strategy Don't misunderstand. Just as it did for several years prior to 2021, there will come another time when Berkshire Hathaway shares lag the market. That's just the nature of Warren Buffett's value-minded style -- it tends to underperform when investors are captivated by new, game-changing industries. Just remember the past five years the next time that happens, and the past three years in particular. A truly great stock is worth buying and holding even through the rough patches. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
Zacks Industry Outlook Highlights Broadcom and Applied Materials
For Immediate Release Chicago, IL – August 12, 2025 – Today, Zacks Equity Research discusses Broadcom AVGO and Applied Materials AMAT. Industry: Electronics - Semiconductors 2 Stocks to Buy From the Challenging Semiconductor Industry The Zacks Electronics - Semiconductors industry is suffering from macroeconomic challenges, end-market volatility, broad-based inventory correction and growing geopolitical tensions. Tariffs on trade partners, including China, are expected to hurt the industry's prospects. However, industry players are benefiting from the growing proliferation of AI, Generative AI (Gen AI), IoT, Machine Learning (ML) and industrial revolution 4.0 (which focuses on interconnectivity and automation). These have turned out to be boons for industry players like Broadcom and Applied Materials. Increasing demand for AI-supportive chips from hyperscalers is a major growth driver. The growing demand for high-volume consumer electronic devices, including digital media players, smartphones, tablets, efficient packaging, machine vision solutions and robotics, should continue to drive the industry's growth. Industry Description The Zacks Electronics – Semiconductors industry comprises companies that provide a wide range of semiconductor technologies. Their offerings include packaging and test services, wafer cleaning, factory automation, face detection and image-recognition capabilities to develop smart and connected products. The industry participants primarily cater to end markets that include consumer electronics, communications, computing, industrial and automotive. The companies are increasing their spending on research and development to stay afloat in an era of technological advancements and changing industry standards. The industry is experiencing solid demand for advanced electronic equipment, which is helping its participants increase their investments in cost-effective process technologies. What's Shaping the Future of the Electronics - Semiconductors Industry? AI Demand Driving Prospects: Industry participants are benefiting from growing demand for advanced manufacturing processes and energy-efficient computing power, both of which are needed to develop AI-supportive chips. AI is gaining popularity thanks to multimodal learning and growing context awareness. The emergence of Gen AI and Agentic AI has further enhanced AI's capabilities, making it a key driver of efficiency, automation and innovation. Significant improvements in computing hardware (GPUs and TPUs) are allowing the development of more complex AI models. The growing number of high-speed data centers worldwide, which require ultra-fast Internet that 5G promises to deliver, is a tailwind. Increased connectivity and use of technology in consumer electronics through IoT, AI, robotics, AR/VR and others further set the momentum for 5G. Smart Devices Aiding Computing Demand: Smart devices need computing and learning capabilities to perform functions like face detection, image recognition and video analytics capabilities. These require high levels of processing power, speed and memory and low power consumption, as well as better graphics processors and solutions, which bode well for the industry. Graphic solutions help increase the speed of rendering images and improve image resolution and color definition. Prospects Around Advanced Packaging Robust: The increasing demand for miniaturization, greater functionality, lower power consumption, and improved thermal and electrical performance are driving the demand for semiconductor packaging and test technologies. The growing requirement for advanced packaging is gaining traction in the semiconductor industry, which is a key catalyst for industry participants. Complex Process Drives Demand: The requirement for faster, more powerful and energy-efficient semiconductors is expected to increase rapidly with the robust adoption of cloud computing, IoT and AI. Semiconductor manufacturers are primarily looking to maximize manufacturing yields at lower costs, making semiconductor manufacturing processes more complex and driving the demand for solutions offered by industry participants. The rapid adoption of IoT-supported factory automation solutions is another contributing factor. Zacks Industry Rank Indicates Dim Prospects The Zacks Electronics - Semiconductors industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #182, which places it in the bottom 25% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. Since April 30, 2025, the industry's earnings estimates for the current year have moved down 3.6%. Given the bearish prospects, there are only a few stocks that you can consider for your portfolio. However, before we present the stocks, let us look at the industry's recent stock-market performance and valuation picture. Industry Outperforms S&P 500 & Sector The Zacks Electronics - Semiconductors industry has outperformed the Zacks S&P 500 composite and surpassed the broader Zacks Computer and Technology sector in the past year. The industry has appreciated 51.5% over this period compared with the Zacks Computer and Technology sector's return of 29.1% and the S&P 500's appreciation of 20.3%. Industry's Current Valuation On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing electronics semiconductor stocks, the industry is currently trading at 34.32X versus the S&P 500 and the sector's 22.69X and 28.15X, respectively. Over the past five years, the industry has traded as high as 34.32X and as low as 11.05X, with the median being 19.7X. 2 Electronics Semiconductor Stocks to Buy Broadcom: This Zacks Rank #2 (Buy) company is benefiting from strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Strong demand for Broadcom's networking products and custom AI accelerators (XPUs) has been noteworthy. AVGO's AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. Broadcom expects third-quarter fiscal 2025 AI revenues to jump 60% year over year to $5.1 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of the fiscal second quarter, roughly 87% of Broadcom's largest 10,000 customers have adopted VMware Cloud Foundation. Broadcom stock has appreciated 31% year to date (YTD). The Zacks Consensus Estimate for AVGO's fiscal 2025 earnings has been steady at $6.63 per share over the past 60 days. Applied Materials: Another Zacks Rank #2 stock, AMAT is benefiting from strength in the Semiconductor Systems, owing to a rebound in the semiconductor industry, particularly in the foundry logic space. Solid momentum in the subscription and display businesses is a plus for Applied Materials. The company's strong position in IoT, Communications, Auto, Power and Sensors (ICAPS) has helped it gain market share. AMAT's diversified portfolio remains its key growth driver. Applied Materials has appreciated 16.2% YTD. The Zacks Consensus Estimate for AMAT's fiscal 2025 earnings has declined by a penny to $9.46 per share over the past 30 days. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Applied Materials, Inc. (AMAT): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
Globe and Mail
3 hours ago
- Globe and Mail
NiCE Deepens Partnership with Salesforce to Accelerate End-To-End Customer Service Workflow Orchestration
NiCE (Nasdaq: NICE) today announced an expanded strategic partnership with Salesforce to deliver seamless, AI-driven customer experiences through a deeper integration between NiCE CXone Mpower and Salesforce Service Cloud. After launching Bring Your Own Telephony with Salesforce Service Cloud Voice in 2022, the companies will further invest in enabling Bring Your Own Contact Center, inclusive of customer managed channels and NiCE's leading WEM capabilities in the Service Cloud unified desktop. NiCE and Salesforce support a shared customer base of hundreds of thousands of users. This expanded partnership adds powerful new capabilities while laying the foundation for continued innovation and joint growth. NiCE further intends to join the Salesforce Zero Copy Partner Network as the first in the Contact Center ecosystem to enable the unification of contact center interaction insights with CRM data through a new bidirectional Zero Copy integration with Salesforce Data Cloud. This will provide customers with a shared data foundation between NiCE CXone Mpower and Salesforce Data Cloud that eliminates silos and unlocks data to accelerate AI-driven experiences across both platforms. Shared customers can use this integration to enable real-time AI-driven orchestration using complete experience context. AI agents can operate with a complete, stateful understanding of the entire journey across self-service, live support, and fulfillment, including awareness of past actions, intent, and outcomes. Through this collaboration, organizations can leverage CXone Mpower's real-time orchestration engine, industry-leading workforce augmentation solutions and purpose-built AI for CX seamlessly within Salesforce Service Cloud's unified desktop for Service Reps. This integration extends NiCE's industry-leading connected intelligence across Salesforce digital channels, cases, and interactions, delivering a streamlined, AI-first service experience. By uniting Service Cloud's robust CRM platform, renowned for advanced case management and extensive digital channel support, and AI assistance for service reps in the agent desktop with CXone Mpower's intelligent CX automation and orchestration capabilities, joint customers gain a unified, intelligent service environment. If a customer begins their journey with an autonomous agent, they can seamlessly transfer their conversation to a human service rep with their entire transcript and Salesforce record intact and if the issue becomes even more complex a supervisor can access the conversation for real-time coaching. This is one example of how NiCE and Salesforce are enabling seamless orchestration of complex customer journeys across every touchpoint, with real-time decisioning, workflow automation, and personalized interactions that drive customer satisfaction and operational efficiency. 'This renewed partnership with Salesforce marks more than just deeper integration, it signals a vision for the future of customer service,' said Barry Cooper, President, CX Division, NiCE. 'Together, we will collaborate to help businesses move from disconnected touchpoints to intelligently orchestrated experiences that span the entire customer journey. As our partnership grows, so does our commitment to helping our mutual customers lead the way in AI-powered service.' "Strengthening our partnership with NiCE will help organizations further provide deeply unified customer service experiences,' said Kishan Chetan, Executive VP and GM Service Cloud at Salesforce. 'Together, we're helping organizations move beyond channel silos and orchestrate intelligent, outcomes-driven interactions at scale, ultimately delivering greater value to our mutual customer through continued innovation.' About NiCE NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose-built AI-powered platforms automate engagements into proactive, safe, intelligent actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE's platforms are widely adopted across industries connecting people, systems, and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes. Trademark Note: NiCE and the NiCE logo are trademarks of NICE Ltd. All other marks are trademarks of their respective owners. For a full list of NICE's marks, please see: Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Cooper, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the 'Company'). In some cases, such forward-looking statements can be identified by terms such as 'believe,' 'expect,' 'seek,' 'may,' 'will,' 'intend,' 'should,' 'project,' 'anticipate,' 'plan,' 'estimate,' or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of changes in general economic and business conditions; competition; successful execution of the Company's growth strategy; success and growth of the Company's cloud Software-as-a-Service business; rapid changes in technology and market requirements; the implementation of AI capabilities in certain products and services, decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties in making additional acquisitions or difficulties or effectively integrating acquired operations; loss of market share; an inability to maintain certain marketing and distribution arrangements; the Company's dependency on third-party cloud computing platform providers, hosting facilities and service partners; cyber security attacks or other security incidents; privacy concerns; changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy; our ability to recruit and retain qualified personnel; the effect of newly enacted or modified laws, regulation or standards on the Company and our products and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the 'SEC'). For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the SEC, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.
