IT Companies May Redirect Staffing Towards Product-Focused Services, According to Nasscom
The tech industry is experiencing a significant shift in 2025, driven by rising client expectations and the adoption of advanced technologies such as generative AI, agentic AI, 5G, augmented reality (AR), virtual reality (VR), and automation. These technologies are reshaping the way businesses operate and interact with customers, impacting workforce and hiring trends.
Key predicted transitions include the ubiquitous integration of AI, enhanced customer experiences, expansion of 5G infrastructure, and growth in AR and VR. AI is moving from experimental to foundational, with agentic AI systems capable of autonomous decision-making expected to handle at least 15% of daily work decisions by 2028. This shift towards automation creates virtual workforces that augment human tasks, especially in data analysis, financial services, and operational automation.
AI-powered personalization and automation are enabling businesses to deliver individualized interactions and streamline routine processes, raising client expectations for speed and quality of service. The expansion of 5G infrastructure is supporting real-time data processing and interconnectivity critical for IoT, AR, VR, and autonomous systems, enabling new service capabilities and user experiences. More immersive and interactive digital-physical environments are expanding in consumer and enterprise applications, transforming retail, education, training, and remote collaboration.
This evolution demands a workforce increasingly skilled in advanced technologies, flexibility in hybrid human-AI roles, and emphasis on continuous learning and adaptability. Roles are increasingly requiring expertise in AI, machine learning, data science, cybersecurity, and emerging tech like spatial computing and robotics. The shift towards hybrid human-AI collaboration focuses human roles on oversight, creativity, complex problem-solving, and ethical considerations while AI handles routine or data-intensive tasks.
The increased use of automation is reducing routine manual jobs but creating demand for positions managing, programming, and maintaining AI systems, robotics, and digital infrastructures. Cross-industry talent mobility is driving diverse hiring requirements and growth in interdisciplinary roles as tech trends impact healthcare, education, finance, retail, and other sectors.
Nasscom emphasizes the need for collaboration between industry and academia to bridge the skilling divide. They advocate for talent development as a national and business imperative to sustain India's technology leadership in the AI era. Advanced AI skilling initiatives have touched more than 95,000 employees in leading listed firms, and over 1.5 million professionals have been trained in AI and GenAI skills across levels, as of Q4 FY25. Each enterprise will navigate the tech industry transitions based on its unique strategic needs, according to Nasscom.
In the near term, workforce rationalization may occur as traditional skillsets are re-evaluated, leading to layoffs in certain sectors. Nasscom anticipates some transitions in the tech industry as organizations shift towards product-aligned delivery models. Technology will remain a powerful catalyst for growth in the long term, according to Nasscom.
It's important to note that no specific company is mentioned in relation to the expected layoffs. Additionally, the article does not provide information about Q1 results for any specific companies. There were no letters to the editor mentioned in the article dated July 28, 2025.
In a separate development, Apple is closing a retail store in China for the first time. The reasons for the closure are not specified in the article.
- The tech industry in 2025 is undergoing a major transformation, with AI, 5G, AR, VR, and automation playing significant roles.
- AI is becoming foundational in businesses, and agentic AI systems are expected to handle at least 15% of daily work decisions by 2028.
- The shift towards automation creates virtual workforces, augmenting human tasks, particularly in data analysis, financial services, and operational automation.
- AI-powered personalization and automation enable businesses to deliver individualized interactions and streamline routine processes.
- The expansion of 5G infrastructure supports real-time data processing and interconnectivity crucial for IoT, AR, VR, and autonomous systems.
- The increased use of automation is reducing routine manual jobs but creating demand for positions managing, programming, and maintaining AI systems, robotics, and digital infrastructures.
- Nasscom emphasizes the need for collaboration between industry and academia to bridge the skilling divide and maintain India's technology leadership in the AI era.
