AI Vs Indian IT: After TCS Layoffs Trigger 'Wake Up' Call, This Market Expert Eyes Potential Opportunity
AI Vs Indian IT: Gautam Trivedi, Co-Founder & Managing Partner, Nepean Capital told NDTV Profit that AI enablement globally can be a potential opportunity for Indian IT companies, despite the layoffs.
Indian information technology (IT) players including Tata Consultancy Services (TCS), Infosys, Tech Mahindra, Wipro, among several others, have fast begun to adopt the advent of artificial intelligence (AI) into their operational and business models. However, AI, with its many advantages, has thrown a few curveballs which has challenged the domestic landscape. The word on the Street —layoffs and cost-cutting.
TCS recently announced slashing 2% of its global workforce, impacting about 12,000 jobs, which has triggered a 'wake-up call' for the Indian IT companies. Gautam Trivedi, Co-Founder & Managing Partner, Nepean Capital told NDTV Profit AI is the 'new reality' that the IT sector needs to wake up. Trivedi added that he also eyes a potential opportunity with global enablement.
Gautam Trivedi sees a potential opportunity with AI despite layoffs
Highlighting the impact of new technological advancements, Trivedi told NDTV Profit that the Indian IT companies are 'grappling' with the advent of AI as the sector is getting new updates on it every week. "IT companies need a lot of rescaling, however, AI enablement globally can be a great opportunity," said Trivedi.
The market expert warned that India's growth story has slowed down 'a bit' but also expressed optimism saying that the 'future still remains bright'. "India is struggling with high single-digit earnings growth which weighing on foreign investments," he said. He added that foreign investors have pulled out over $9.2 billion from Indian equities so far in 2025.
"The Indian market is currently at similar valuations with S&P," noted Trivedi. However, he added that the Indian stock market will not see a major correction until the domestic investor flows slow down.
TCS layoffs to weigh on Indian IT sector?
TCS has clarified that the layoffs are not because of AI, but over the company's "limited opportunities to redeploy employees amid skill gap". TCS CEO K. Krithivasan described the move as “one of the toughest decisions” in his tenure, emphasizing that the layoffs are not driven by AI but by the need to be “future-ready and agile.”
Global brokerage Citi flagged concerns about sluggish growth, margin pressures, and macro uncertainty weighing on the sector. “We continue to worry about increased market fragmentation & competitive intensity… Margin pressures are given sluggish growth & the need for investments.”
