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Informist, Tuesday, Feb. 17, 2026

By Shakshi Jain and Pratiksha

NEW DELHI – The information technology services industry is likely to see a decline in aggregate headcount over the next year or two before again becoming a net creator of jobs, according to S. Gopalakrishnan, co-founder of Infosys Ltd. "Decline because there is already attrition, and they will not hire," Gopalakrishnan told Informist on the sidelines of the India AI Impact Summit 2026 here. "Normally, they will hire to cover the attrition at least, so the number of employees stays steady, but now they will not cover attrition, so you will see a net decline."

The former chief executive officer of India's second-largest IT services company by market capitalisation does not, however, foresee mass layoffs in the domestic IT services industry. Goplakrishnan said business process outsourcing jobs are being replaced and the segment may not grow over the next five years, but the broader IT services industry will continue to expand.

"If you want me to venture some guess, I would say today the industry employs 5.5 million people...," Gopalakrishnan said. "Five million probably will go to 6-8 million (in five years)... AI will create large number of new opportunities."

For the December quarter, the 13 IT companies that are part of the Nifty 200 index reported a cumulative net loss of 599 employees on a sequential basis, taking their aggregate headcount to 1.76 million as of Dec. 31. 

IT companies in India, which derive a large part of their revenue from the US, are facing a prolonged slowdown owing to geopolitical conflicts and macroeconomic uncertainties. The companies are also making structural changes driven by automation and artificial intelligence to reshape workforce deployment.

While there is relatively strong demand for specialised roles, pressure is visible in mid-level positions.

Gopalakrishnan said it may appear that AI is having a negative impact on the sector in the short term, but over the medium to long term, the technology will benefit the industry. Though he did not specify a number, Gopalakrishnan said AI will account for an increasing share of industry revenue over time.

"As an individual, there is a sense of urgency," he said. "If you are somebody who is passing out (of college) today, yes, you will find that entry level jobs are, you know, kind of scarce at this point, in the IT services industry."

He said software developers must invest quickly in learning AI tools, but IT services firms have five to 10 years to make the transition and align with changing industry needs.

Gopalakrishnan also said that with population declining across major economies, India has the opportunity to provide talent for the world. "For example, right now, GCCs (global capability centres) are growing very fast, because everybody is coming to India to tap into the talent, so the picture is very complex," he said.  End

Edited by Rajeev Pai

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