Indian IT leader warns AI shift may hinder entry for new graduates into tech sector

Rajesh Nambiar, President of the National Software and Services Companies Association in India, warned that AI automation of programming and software testing could significantly impede entry into the tech industry for new graduates. Nambiar suggested relief depends on Indian software exporters adapting; companies must pivot from decreasing core functions to areas like AI consulting, cybersecurity, and technical deployment to cover revenue gaps. Billing models shifting to outcome-based fees will also alter hiring thresholds. Nambiar stressed universities must overhaul computer science curricula, cautioning thousands of engineering graduates risk having outdated skills amid the sector's 'rebalancing.' He believes 80% to 85% of firms will survive this transition, but those resistant to self-reform face existential risks. Contextually, India has nearly 2.6 million students across 5,903 engineering institutions (as of the fiscal year ending March). Despite tech job opportunities, graduate unemployment is severe; Azim Premji University estimates unemployed graduates nearly quadrupled between 2004 and 2023, reaching about 11 million.