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Tata Consultancy Services (TCS), India's largest IT company, is making headlines due to significant layoffs and hiring freezes. While job cuts are widespread in the IT sector, experts suggest TCS's situation is particularly complex. TCS Layoffs have triggered alarm across the Indian tech ecosystem, especially among mid-level professionals.
The company's large workforce and shifting project demands have created a unique challenge, setting it apart from its competitors. As the industry navigates changing dynamics, TCS's struggles may be more deeply rooted due to its massive employee base and evolving project requirements.
TCS has always hired a lot of people. This helped the company grow super fast before. But now, digital projects are taking over traditional outsourcing. So, this strength is now a challenge. TCS has over 600,000 employees, making it one of the largest employers in the world.
With the way tech is going, we need smaller, focused squads - the old setup just doesn't cut it anymore. Projects are dragging, especially with clients in the US and Europe. Because we have fewer projects, we've got people sitting around with nothing to do.
The scale and timing of the TCS Layoffs suggest deeper structural concerns beyond just performance-based exits. This raises questions about how well TCS is using its people. According to analysts, TCS has significantly more people on the bench compared to other Indian IT firms, resulting in wasted money and rising salary costs.
Also Read: Are TCS Layoffs the First Wave? Experts See More IT Jobs at Risk
Analysts think the company's internal talent strategy may be outdated in the face of rapidly changing tech demands. Another clear sign of trouble is that new college grads are waiting to start working. Thousands of them who were hired from college campuses have not yet joined the company.
Many analysts think that cultural rigidity might be hampering innovation at a critical time for the industry. The delay suggests that TCS doesn't have enough immediate work for them. This also shows poor planning and a failure to keep up with changing work needs.
The people problem in TCS reflects a broader struggle to balance automation, skill gaps, and career stagnation. The IT world is heading toward AI, cloud computing, and cybersecurity. Still, many TCS employees are trained on outdated systems.
Compared to other Indian IT Firms, TCS seems to face more persistent Workforce Issues across verticals and geographies.TCS offers upskilling programs, but training a large number of people is challenging. It's harder to put teams on new digital projects when there's a skill gap. This causes even more delays and problems.
TCS's layoffs are not solely due to the economy's poor performance. The layoffs reveal significant issues with TCS's people management. TCS needs to rethink its hiring and training processes, as it has too many people waiting for projects, lacks the right skills in some areas, and struggles to keep up with the latest trends.
If TCS doesn't make some big changes, this problem could hold the company back in the future.
