Mumbai, February 24, 2026 — Amid growing concerns over job losses and the long-term relevance of India’s nearly $300 billion IT services sector in the era of artificial intelligence (AI), HCLTech CEO C. Vijayakumar described the ongoing industry shift as a “painful” transition — primarily because it directly impacts people.
Speaking at the Nasscom Technology and Leadership Forum (NTLF) in Mumbai on Tuesday, Vijayakumar acknowledged that the industry is at one of its biggest inflection points. He contrasted the current AI-driven changes with previous technological transitions the sector has navigated successfully.
“I would say this transition (brought by AI) is different from the other transitions. It’s going to be painful because it really involves people,” he said.
The comment highlights the human element at the core of the challenge: while past shifts (such as those from mainframes to client-server models or the rise of digital services) focused more on technology adoption and process evolution, AI demands massive reskilling, cultural changes, and rethinking of workforce models. This makes the adjustment slower and more disruptive for employees, companies, and operating structures.
Despite the acknowledged difficulties, Vijayakumar struck an optimistic note, emphasizing that this is not the time to declare the IT industry obsolete. He pointed to enduring strengths that will help the sector remain relevant:
- The ability to manage complex enterprise technology architectures.
- Deep domain understanding and industry-specific expertise.
- The need for human oversight in large-scale enterprise environments, where off-the-shelf AI solutions rarely suffice without customization and integration.
He stressed that AI presents huge opportunities for tech companies, but the path forward requires a focus on efficiency over traditional headcount-based growth models. The industry must reinvent itself — including upskilling the workforce in specialized AI-related areas — to emerge stronger and more valuable to global clients.
The remarks come against a backdrop of broader industry pressures, including recent job cuts at major players like TCS and analyst warnings about AI potentially automating routine tasks that have long driven revenue for Indian IT outsourcers. However, leaders like Vijayakumar argue that enterprises will continue to rely on trusted partners for navigating hybrid human-AI environments and complex transformations.
HCLTech, with its emphasis on engineering, digital, and AI services, positions itself as well-prepared for this shift through investments in talent development and partnerships.
