India is well on its way to becoming the AI office of the world, said Rajesh Varrier, President – Operations, Cognizant, and Managing Director, Cognizant India, in a conversation with businessline. He noted that India can add value across the AI spectrum—from R&D and innovation to enterprise solutions.

During the businessline webinar, “Is AI taking away IT jobs?”, Varrier highlighted that in the last 20 years, India’s GDP has only grown on the back of technology, and the adoption of the internet.

AI: Uncertainty

“Every Fortune 2000 company works with Indian firms to run their business and looks to India for technology-driven solutions. AI is impacting every industry. It is an exciting new technology. However, while some remain excited, others are worried. There is some uncertainty about where this evolution will take us,” he added.

AI is set to impact most global industries — and consequently, job roles — as companies across sectors explore how to enhance productivity, improve efficiency, accelerate time-to-market, and deliver better customer service through AI-driven solutions.

AI’s impact

However, the degree of AI’s impact will vary across roles — some significantly affected, while others less so. This disparity will become apparent over the next 7 to 8 years.

“Look at how we evolved from a pre-computer era to now, where everybody is using one. Whether you’re in HR, finance, legal, or healthcare, everybody is using computers. Similarly, we are entering an era where AI will assist people to do their job faster and better.”

While concerns about job displacement are a natural part of industrial evolution, the underlying dynamics of these debates have remained largely unchanged in recent years. Recent layoffs, therefore, cannot be attributed solely to AI, he said.

Workforce changes can also stem from strategic shifts in an organisation’s geographic focus, prompting companies to reduce local headcount in one region while expanding operations in another.

Tech shift

“A business might bet on a particular product line, and decide it’s not working. It may move to another product line, and hence, reshape the workforce. Certain changes in technology may require you to upskill and cross-skill, and many employees might not be there yet. I strongly believe we are not seeing anything dramatically different because of AI,” Varrier emphasised.  

India is poised for substantial growth amid this technological shift, largely due to its abundant talent pool. With numerous colleges and universities producing a stream of graduates, the country continues to expand its six-million-strong IT workforce. While the sector may not outpace its previous growth, it is likely to grow more rapidly than many others.

AI enhances productivity

In practice, entry-level and junior associates have experienced a 50 per cent increase in productivity through the use of AI, compared to a 17 per cent improvement among senior professionals. This indicates AI is helping to lower the entry threshold, potentially leading to a surge in opportunities at the junior level. He continued that as a result, there may be a growing demand for entry-level roles across industries.

Varrier observed that most large organisations in India, along with schools and universities, are actively training individuals in AI. This collective effort is expected to create a sizable AI-skilled workforce capable of serving global markets.

Growth story

“This growth story is not just about Chennai, Bangalore, Hyderabad, or major cities, but also smaller cities that are bustling with talent and can scale up. Companies like Cognizant are investing significantly in ensuring the people we bring on board from colleges and schools are trained and enabled to work with these newer technologies and solve business problems,” he said.

However, not all academic institutions have access to cutting-edge technologies. While a few are leading the way in adapting to technological change, many others may find it challenging to keep pace. Strengthening partnerships between industry and academia can help bridge this gap—ensuring that graduating students are better aligned with the skills and knowledge required in the industries they aim to enter.

AI roadmap

Speaking about the potential for high-paying jobs driven by AI, he noted many companies are still in the early stages of exploring how AI can benefit their businesses. They require support in developing use cases, building proof of concepts (POCs), and understanding the business impact of said POCs. As a result, professionals who can help define AI roadmaps, solve complex problems using AI, and guide organisations through this journey are in high demand. AI engineers, in particular, are highly sought after. From an IT perspective, nearly every role now includes some AI component.

“I am looking forward to our IT industry, currently $250 billion in size, doubling in the coming years with the adoption of technology. It will become cheaper for companies to do more; the productivity and efficiencies will also go up,” Varrier said.

Published on June 13, 2025