India’s top five IT services companies reported record revenue while reducing combined workforce by 7,389 in fiscal 2026 amid AI adoption.
India’s largest IT outsourcing firms, led by Tata Consultancy Services, reported record revenue exceeding $30 billion while cutting thousands of jobs. TCS alone reduced its workforce by 12,200 middle and senior managers last year, citing roles where reskilling was not feasible.
The five biggest IT services companies in India collectively shed 7,389 employees in fiscal 2026, reversing a trend of hiring 12,718 the previous year. Despite the job cuts, revenue grew across the sector, with AI services expanding rapidly. Infosys reported AI-driven revenue at 8.2% of total sales in Q1 fiscal 2027.
The shift reflects broader automation trends, with economists warning AI could accelerate white-collar job losses. India’s IT sector employs nearly six million people and contributes 12% of GDP, making the transition a key economic concern.