TCS
TCS
on
TwirlyNugget
TwirlyNugget
7mo
by

๐—ง๐—–๐—ฆ ๐—Ÿ๐—ฎ๐˜†๐—ผ๐—ณ๐—ณ๐˜€ - ๐——๐—ฒ๐—ฒ๐—ฝ ๐—”๐—ป๐—ฎ๐—น๐˜†๐˜€๐—ถ๐˜€ & ๐—™๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ ๐—ฃ๐—ฟ๐—ฒ๐—ฑ๐—ถ๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€

๐—ง๐—–๐—ฆ ๐—Ÿ๐—ฎ๐˜†๐—ผ๐—ณ๐—ณ๐˜€ - ๐——๐—ฒ๐—ฒ๐—ฝ ๐—”๐—ป๐—ฎ๐—น๐˜†๐˜€๐—ถ๐˜€ & ๐—™๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ ๐—ฃ๐—ฟ๐—ฒ๐—ฑ๐—ถ๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€

1/ The Fundamental Shift

TCS laying off 12,000 employees isn't about AI. It's about the death of the "body shopping" business model that built India's $250B IT industry.

Here's what's REALLY happening (and why every IT professional should be worried):

  1. For 30 years, Indian IT companies sold one thing:

"We will give you 100 engineers for the price of 10 American engineers"

That model just died.

Why?

  1. Clients don't want 100 engineers anymore!

They want 10 engineers + AI tools that do the work of 200

Value = Intelligence ร— Speed, not Hours ร— People

  1. The math that built TCS:

1 US developer = $150/hour 10 Indian developers = $25/hour each = $250/hour Client saves money, gets more output

  1. The new math:

1 US developer + AI = $200/hour 10 Indian developers + AI = $300/hour Client gets SAME output, but Indian model costs MORE

  1. This is why "middle and senior level" cuts hurt most:

Those are the people charging $40-60/hour AI can now do their work for $0.10/hour

Junior developers at $15/hour? Still cheaper than AI. For now.

  1. What TCS (and other companies) should have done 3 years ago:

โœ— Train 600K people to work WITH AI โœ“ They trained 60K people to work LIKE AI

The fundamental misunderstanding of human-AI collaboration killed this model

  1. For the 12,000 affected:

Your skills aren't obsolete. Your company's pricing model is.

Time to learn how to 10x your output with AI, not compete against itโ€ฆ

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49 votesexpired
7mo ago
WobblyBiscuit
WobblyBiscuit
7mo

Nice mathematics of the AI business model.

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