Despite the headlines around layoffs, India’s technology industry continues to grow. NASSCOM’s latest Strategic Review estimates tech sector revenues at around 283 billion dollars in FY25, with the total workforce rising to nearly 5.8 million professionals, and projects the industry to cross approximately 315 billion dollars in revenues by FY26.
Even as companies recalibrate hiring models in response to AI and global headwinds, the sector remains a net hirer over the medium term.
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The recent wave of layoffs across India’s technology sector has understandably reignited concerns about the future of IT jobs. Stories of professionals receiving termination emails overnight have dominated headlines, raising questions about whether one of India’s strongest economic engines is beginning to lose momentum.
The concern is deeply human.
Behind every layoff is a professional who has spent years building expertise, supporting families and contributing to one of India’s most successful industries.
Yet beyond the immediate headlines, another story is beginning to unfold.
What we are seeing is not the disappearance of technology opportunities, but a shift in where demand is emerging and how expertise is deployed.
A changing industry, not a shrinking one
For more than two decades, India’s IT and engineering talent has helped businesses around the world transform digitally, building one of the largest technology workforces anywhere in the world. Artificial Intelligence is now changing how that work gets done.
AI‑powered development tools are reducing the time required to build software, prompting organizations to rethink delivery models, team structures and cost economics. Workforce rationalisation has understandably become the dominant narrative.
But it would be a mistake to conclude that demand for technology expertise is disappearing. As AI accelerates software development, implementation is becoming the bigger challenge for many enterprises. Recent surveys of Indian organisations show AI moving from pilots to scale: over 90% of organisations expect AI spend to increase further, and industry reports describe AI as core infrastructure rather than experimental tooling by FY25–26.
Across banking, healthcare, manufacturing, logistics, retail and education, organisations continue to invest in AI and digital technologies; the constraint is no longer building software, but integrating technology into business operations, enabling adoption, managing change and delivering measurable business outcomes.
”Technology creation is becoming faster, Technology adoption remains hard” – Kavita Rai , Vantrix Ventures”
India’s next tech wave will be SMB‑led
While much of the AI conversation continues to focus on large enterprises, India’s next technology opportunity may emerge from a very different segment of the economy.
Millions of small and medium businesses are only beginning their digital transformation journey. They recognise the need to modernise operations, adopt AI and build digital capabilities, but often lack access to experienced technology leadership that can help them execute these initiatives. For most SMBs, hiring experienced architects, implementation specialists or AI leaders on a full‑time basis is neither practical nor affordable.
The scale of this opportunity is significant. India has over 6.3 crore micro, small and medium enterprises (MSMEs), which together contribute around 29–30% of the country’s GDP and over 45% of exports, making MSMEs the second‑largest employer after agriculture with well over 100 million livelihoods supported. Yet a large share of these businesses remain under‑digitised, with limited access to experienced technology leaders, structured AI adoption programmes and modern enterprise systems.
At the same time, the market is witnessing the availability of highly experienced professionals who have spent years building and scaling technology for global enterprises. For the first time in many years, supply and demand are beginning to intersect in a way that could reshape India’s technology landscape.
India does not have a shortage of talent.It has a distribution problem.
If this expertise can be made accessible through flexible consulting, implementation and talent models, India has an opportunity to accelerate technology adoption across millions of businesses that have historically remained underserved. For two decades, India’s best technology talent has largely helped global enterprises transform. The next opportunity may be to deploy that same capability to help transform India’s own economy.
From full‑time jobs to capability access
In practical terms, this points to a different model for technology expertise. Instead of relying solely on large, full‑time IT teams, India’s next phase of digital transformation will be driven by platforms and firms that can deploy experienced architects, AI practitioners and implementation leaders on a fractional, project‑based and outcome‑driven basis—giving SMBs access to the same calibre of talent that has historically served global enterprises.
Rather than being concentrated within a handful of large IT services firms, experienced professionals will increasingly contribute across multiple organisations—helping businesses adopt AI, modernise operations, implement enterprise technologies and build digital capabilities through flexible engagement models.
For businesses, particularly SMBs, this creates access to expertise that was previously beyond reach. Instead of building large, permanent teams, they can tap into specialist architects, implementation leaders and AI advisors as and when needed. For professionals, it opens opportunities to work on transformation programmes that deliver measurable business outcomes across industries, often in parallel.
The next wave of digital transformation will not be led by Fortune 500 companies alone.
It will be led by millions of small and mid‑sized businesses that can finally access the expertise they need.
This shift represents more than a change in hiring. It represents a new way of deploying technology capability across the economy—moving from owning headcount to accessing capability. Platforms and firms that can orchestrate this expertise at scale will play a critical role in the years ahead.
Looking beyond the headlines
The current phase is undoubtedly challenging for many professionals and their families. But history has shown that technological change reshapes work more often than it eliminates it. Technology has consistently reshaped jobs rather than eliminated the need for skilled talent, and AI is likely to follow the same pattern, although the skills in demand and the way expertise is engaged will continue to evolve.
The conversation around recent layoffs has largely focused on what India stands to lose. Perhaps the more important question is what India stands to gain. With the broader technology and BPM sectors expected to contribute close to 10% of India’s GDP by the mid‑2020s, and tech industry revenues projected to cross the 300‑billion‑dollar mark by FY26, the question is less whether technology will remain central to growth and more how its benefits will be distributed across enterprises of all sizes.
If India can redirect today’s experienced technology workforce towards helping millions of SMBs embrace AI and digital transformation, this period may ultimately be remembered not as the beginning of a slowdown, but as the start of a broader and more distributed technology economy.
India’s technology story is not ending. It is entering its next chapter.
About the Author
Kavita Rai is the Founder & Managing Partner of Vantrix, a strategy, talent and technology firm that partners with enterprises, growth‑stage companies and startups on business transformation, technology adoption and organisational capability.
She is also the Founder of MindMach Technologies, Vantrix’s talent solutions platform, helping organisations build high‑performing technology teams through executive search, technology hiring and workforce solutions. With over a decade of leadership experience across Accenture, Snapdeal, Vedantu and Unacademy, Kavita has worked at the intersection of business strategy, talent and technology. She regularly writes and speaks on AI, workforce transformation and the future of business.
About Vantrix
Vantrix is a strategy, talent and technology firm that works with businesses to navigate growth, organisational transformation and technology adoption. Founded by leaders with experience across BCG, Swiggy, Accenture, Snapdeal, Vedantu and Unacademy, Vantrix brings together strategic advisory, technology expertise and talent capabilities to help organisations scale and transform.
As part of the Vantrix ecosystem, MindMach Technologies serves as the firm’s talent solutions platform, enabling businesses to access specialised technology talent through executive search, staffing and workforce solutions—supporting the emerging model of distributed, on‑demand technology expertise across India’s economy.
For more information, visit www.vantrix.co
