Why the purge is the new normal
The current layoffs (purge) won't be the last. There will more waves in future too.
Simply because TCS is no longer a tech of IT company. It is becoming a service company. Meaning TCS won't invest in creation of any innovative software of its own. It will simply use existing softwares & provide service of running the software to the customer. e.g. TCS won't create its own AI offering. It will simply partner with OpenAI & run the customer's AI application.
Today it's AI, tomorrow there might b other tech.
So TCS will always do low margin, tool running business.
So to maintain margins, TCS will have to let go ppl with high salary & keep adding low salary freshers. So year after year, this purge will continue.
Did you wake up from coma? It was always a service based company & never a tech company.
Support & migration were the backbone of revenue. Almost all migrations are done & support-roles is now replaced by "AI as service" from others like Big4 and hence the layoff.
There is an interesting video on YouTube which talks about companies falling because they prioritize stakeholders over there spending on innovation and employees.
true, company there companies have finalised. They care more about stakeholders rather then output.
Don't mean to burst your bubble but TCS has always been a Services company. We are officially listed as IT "Services" Company.
The "software" we so called build is a service facilitator and not an independent software anyone can use.
You can have a look at registration filings, newspaper clippings, FY statements by companies, US economy files, etc we have made it officially clear we are an IT services company and that is our bread n butter. So yeah good day to you sir.
As I said earlier. Leave it sir. Not everybody can understand the context.
TCS is not the market leader anymore
True.
I had a good laugh reading that TCS was tech company earlier and service company now. I mean it was service based company from the time it was born, the software's you mentioned are like pickles to the main course.
