India tech giant TCS layoffs herald AI shakeup of $283 billion outsourcing sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2025
0mins
Source: Reuters
Job Cuts in Indian IT Sector: Tata Consultancy Services (TCS) announced the layoff of over 12,000 employees, signaling a potential trend of job losses in the Indian outsourcing sector due to AI adoption, with experts predicting up to 500,000 jobs could be at risk in the next few years.
Impact on Workforce and Economy: The layoffs are expected to affect mainly mid-career professionals lacking necessary tech skills, potentially dampening consumer demand in various sectors and highlighting the need for individuals to reskill amidst the ongoing transformation driven by AI and automation.
Analyst Views on CTSH
Wall Street analysts forecast CTSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CTSH is 87.18 USD with a low forecast of 80.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
5 Buy
10 Hold
0 Sell
Moderate Buy
Current: 84.610
Low
80.00
Averages
87.18
High
100.00
Current: 84.610
Low
80.00
Averages
87.18
High
100.00
About CTSH
Cognizant Technology Solutions Corporation engineers modern businesses. Its services include artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, application maintenance, infrastructure and security as well as business process services and automation. Its segments include Health Sciences (HS), Financial Services (FS), Products and Resources (P&R), and Communications, Media and Technology (CMT). HS segment consists of healthcare providers and payers, and life sciences companies. FS segment includes banking, capital markets, payments and insurance companies. P&R segment includes manufacturers, automakers, retailers, consumer goods companies, and travel and hospitality companies, as well as businesses providing logistics, energy and utility services. CMT segment includes global communications, media and entertainment, education, information services and technology companies.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.








