Tata Consultancy Services (TCS), India's leading IT outsourcing company, announced it will increase salaries for 80% of its employees effective September 1, 2025, following a five-month pause due to macroeconomic uncertainty. Concurrently, TCS is undertaking a major restructuring that involves laying off over 12,000 employees, a move signaling the start of a broader AI-driven transformation in the $283 billion Indian IT outsourcing sector. Industry experts warn that this AI-fueled shift could result in the elimination of up to 500,000 jobs in the sector over the next three years. This trend reflects a global pattern where CEOs are increasingly adopting AI and automation to reduce workforce costs, with over 10,000 U.S. jobs cut in 2025 directly linked to automation. The ongoing transition is expected to significantly reshape white-collar work worldwide.