Indian IT companies have lost $50 billion since 2025. Why did the Nasscom president dismiss AI concerns?:Last year, after the layoffs at big tech companies like Microsoft, Infosys and Google in 2025.

News Topical, Digital Desk : There is a heated debate going on in the IT sector regarding Artificial Intelligence (AI). After the layoffs in big tech companies like Microsoft , Infosys and Google in 2025 last year , the apprehension has deepened whether AI will completely replace IT jobs in the future. Companies have cited increasing investments in AI and future strategic restructuring as the reason behind the layoffs, which has naturally increased the anxiety of the employees. Statistics show that the market value of IT companies has declined by more than $50 billion since 2025.

However, Rajesh Nambiar, president of industry body NASSCOM, dismisses these fears as unfounded. He says AI will not eliminate technology services jobs, but will instead transform the way we work. According to him, the role of IT services will remain as essential as ever for large enterprises and for implementing, managing complex technical systems, and meeting regulatory requirements.

Why should we not be afraid of AI?

Speaking to the Economic Times, Nambiyar said the fear being spread about cloud, automation or AI-based tools that they will eliminate traditional IT jobs is completely baseless.

Even though some analysts believe that IT services revenue could decline by about 2 percent in the coming years due to AI tools like Anthropic 's CoWork or platforms like Palantir Technologies , Nambiar is confident that the approximately $283 billion Indian IT industry will successfully absorb this change.

What did NASSCOM President say?

Industry leaders believe that AI will transform skills rather than eliminate jobs. This means that the challenge is not the existence of jobs, but rather the upskilling of workers and their ability to adapt to new technologies.

NASSCOM President Rajesh Nambiar has taken a balanced and optimistic stance on the concerns surrounding H1B visa interviews. He says that Indian IT companies have sufficient local talent and operational capabilities in the US to meet their project and client needs. This means that despite the visa-related uncertainties, there is little chance of a significant negative impact on their operations.

He pointed out that the global delivery model has become more diverse and localized than ever before. Many Indian IT companies have strengthened local hiring and onshore capabilities in the US, reducing their dependence on H1B visas.

It's worth noting that NASSCOM is preparing its annual strategic review ahead of the Technology and Leadership Forum in February. This forum will bring together industry leaders to discuss key issues such as AI, global talent mobility, visa policies, and the future direction of the IT sector.