Tech

India's IT services pyramid Is hollowing out from the middle

Sujay Choubey

September 30, 2026 | 8 Min Read

India's IT services pyramid Is hollowing out from the middle

September 30, 2026 | 8 Min Read

AI is reducing demand for mid-level engineering and consulting work in roughly the same way as banking technology slowly replaced clerks in banks.

India's largest IT services company is adding at the bottom and cutting from the middle. Tata Consultancy Services (TCS) shed 23,460 employees in FY2026. In the same year, it hired over 44,000 freshers, up from 42,000 the year before, according to its annual report.

Revenue grew 4.6%, down from 6% the year before. The company got smaller and slower at the same time. But revenue per employee rose 3.4%. Each person produced more. TCS said the restructuring primarily hit "the middle and the senior grades."

Corporate

Access unlimited content at a special discounted rate. Trusted by top VC’s and leading organizations, we provide bulk subscriptions for groups of 30+. Contact us for more details

Campus

Top educational institutions have collaborated with us for campus-wide subscriptions. For bulk campus-wide access, please get in touch.

Got a tip? If you have a lead we should be chasing at The CapTable, write to us at [email protected]

Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds

Trusted by the best

Karthik Reddy

Blume Ventures

The CapTable brings a refreshing set of insights for us at the Blume team, highlighting stories that bring together the underlying business and founders with that of investors' journeys with these startups. It's an important perspective that very few bring to startup ecosystem enthusiasts.

Latest Articles

Anthropic’s prospectus of radical confession

Anthropic is asking public markets to finance a technology it says could transform the global economy, and potentially threaten humanity. Its IPO prospectus raises a harder question: can markets price a risk they may never fully understand?

Pradip K Saha

Anthropic’s prospectus of radical confession

If AI is writing your resume, then what?

With candidates and recruiters using similar AI tools, resumes are becoming less reliable as evidence of capability, pushing assessment further into the hiring process.

Sanghamitra Kar

If AI is writing your resume, then what?

Under Ronnie Screwvala’s watch, upGrad is chasing PhysicsWallah, Eruditus

With Unacademy in its fold, Ronnie Screwvala’s upGrad is stitching together a larger, more diversified company, chasing PhysicsWallah and Eruditus on scale. But whether it can turn that heft into sustainable growth remains to be seen.

Ishan Patra

Under Ronnie Screwvala’s watch, upGrad is chasing PhysicsWallah, Eruditus

India’s startup funding needle moves, but only slightly

More capital flowed into fewer deals in the first nine months of 2026, with seed funding falling even as early-stage investments strengthened.

Thimmaya Poojary

India’s startup funding needle moves, but only slightly

Free Read

The sandbox is breaking

AI is testing the boundaries of what machines can do, and changing what human skills are worth. As routine white-collar jobs become easier to automate, applied skills are becoming harder to find and increasingly valuable.

Pradip K Saha

Convinced that The Captable stories and insights
will give you the edge?

Convinced that The Captable stories
and insights will give you the edge?

Subscribe Now

Stories

Explore