Inflection point for IT

Tata Consultancy Services’ (TCS) decision to lay off 2% or about 12,000 of its global workforce is a clear signal of where the domestic information technology (IT) industry now stands. It’s the first open admission by a major player that the traditional model that drove decades of growth is no longer working. While TCS may be the first to act, it’s unlikely to be the last. Other companies will certainly follow as the moment of reckoning for domestic IT firms has arrived.