Hiring at India's Big Four outsourcers stalls as AI bites (www.theregister.com)

India's largest IT outsourcers—HCL, Infosys, TCS, and Wipro—have significantly slowed their hiring as they increasingly integrate AI into their operations. This shift comes despite their decent quarterly revenue growth, with HCL reporting $3.8 billion (up 7.4% year-over-year) and TCS at $7.5 billion (up 3%). Traditionally known for rapid recruitment, these companies collectively added just 3,910 staff over the past year, a stark contrast to their historical quarterly hiring rates. For instance, TCS and HCL even reported headcount losses of 11,000 and 261, respectively. The growing reliance on AI signifies a major transformation in how these firms deliver services, as they’re focusing on using AI to enhance operational efficiency and client offerings. Infosys has developed a tool to create AI-driven Global Capability Centers, showcasing a meta-approach to outsourcing. As companies witness increased demand for AI expertise from clients, they are actively recruiting professionals with AI knowledge while simultaneously upskilling their existing workforce. This strategic pivot highlights not just an adaptation to technological advancements but also a shift in workforce dynamics in the tech services sector, with potential implications for future hiring practices and service delivery models.