An AI Tsunami is Hitting India’s Tech Sector — Should we care?
India’s IT giants are shedding jobs at scale — and AI is the reason. This isn’t clickbait.
According to a BBC article that’s been doing the rounds, thousands of roles at major outsourcing firms like Infosys and Wipro are being cut, with early-career tech workers hit hardest. What’s replacing them? Generative AI, automation tools, and machine learning systems that can now do what entry-level coders, testers, and analysts used to.
Let’s be clear: this is a global pivot point. The model of cheap, scalable, human-driven outsourcing is collapsing — and fast.
And here in Aotearoa? We’re not insulated. Stuff recently reported a second month of declining job ads across the board, including in tech (link). This is not business as usual. We are entering an era where roles disappear faster than systems can adapt, and our current approaches to workforce development simply won’t cut it.
What are we doing to prepare our own workforce for this new reality?
Our current workforce strategies — structured training, microcredentials, slow-moving funding models — simply aren’t built for the pace of change we’re now facing. AI doesn’t wait for curriculum review cycles or committee sign-off. People need to adapt faster than our systems are enabling.
We can’t afford to sit still. We need to rethink not just how we reskill, but who leads that reskilling, how we incentivise it, and how we deliver it in ways that are flexible, human-centred, and economically sustainable.
I asked ChatGPT what alternative models we could consider - here is it’s answer:
Just-in-time learning – Modular, stackable training that aligns with real-time industry demand. Small, rapid sprints of learning tied directly to evolving roles and tasks.
Employer-led retraining funds – Pooling investment from employers and government to fund targeted retraining, with a focus on redeployment rather than redundancy.
Community-driven skills hubs – Regional or sector-specific hubs where industry and educators co-design short, high-impact learning programmes tailored to local needs.
Digital apprenticeship models – Expanding beyond trades, digital apprenticeships could support structured, paid on-the-job training for evolving tech roles, especially those impacted by AI.
AI fluency for all – We need to democratise AI understanding. This doesn’t mean turning everyone into a data scientist, but ensuring people across all industries understand how to use, question, and shape AI tools responsibly.
Clearly I don’t have an answer for how we pivot. I do know that if we don’t act, we risk falling into the same trap: watching roles disappear, then scrambling to respond too late.
What’s happening in India is a warning shot, not a distant storm. As AI continues to reshape the nature of work, Aotearoa New Zealand must meet this moment with agility, imagination, and a commitment to inclusive growth. Aotearoa’s size can be our advantage — we can move faster, test smarter, and redesign a workforce strategy that truly fits the future.
