In a conversation with CNBC-TV18, Bob Willen, Chairman and Managing Partner at Kearney, along with Siddharth Jain, Country Head and Managing Partner at Kearney India, indicated that AI is already changing workforce dynamics, consulting frameworks, and technology investment behaviors globally.
Jain emphasized that the future of Indian IT services firms rests with them, noting that the industry encounters both disruption and opportunity based on how it navigates the AI landscape.
“If they fail to innovate and progress beyond outdated models, disruption will occur, leading to a decline in the sector,” Jain cautioned.
He also pointed out that the global demand for technology talent and AI-driven transformative services is expected to grow as organizations recalibrate their operations towards automation and digital frameworks.
“For most organizations undergoing transformation, you will generally need fewer employees to run a business, but there is still a requirement for more technology personnel to develop appropriate AI solutions and interventions within the organization,” he explained.
As per Jain, Indian IT companies must shift from traditional full-time employment or rate-card-based outsourcing towards a more consultative, transformation-centered business model.
“That’s essential,” he remarked. “I believe some firms are already on that path, but not all.”
He indicated that significant market-share changes are anticipated in the coming years, potentially favoring mid-sized firms that might adapt more rapidly to AI-driven disruption compared to larger counterparts.
“I have a sense that some big players might struggle, potentially leading to some consolidation at that level,” Jain clarified, indicating that consolidation may not solely involve mergers and acquisitions but could reflect substantial market-share declines for certain established entities.
Indian firms are also likely to increase cross-border acquisitions in pursuit of enhanced global consulting capabilities and broader international client access, he added.
Willen mentioned that Kearney itself is observing similar trends internally as AI adoption accelerates worldwide. The firm, which is preparing to celebrate its centennial in 2026, has navigated businesses through various historical phases, including the Great Depression, post-war reconstruction, the digital revolution, and now the AI era.
“We are witnessing many of the same dynamics that our clients are experiencing with AI — vast opportunities and potential, considerable innovation,” remarked Willen.
He added that various industries are still grappling with how to scale successful AI initiatives into sustainable operational models.
“We’re also examining the workforce situation,” he noted. “The shift is taking longer than expected for the workforce to adapt.”
In light of concerns about layoffs and restructuring within parts of the tech sector, Willen stated that Kearney continues to hire, though the emphasis is increasingly on recruiting personnel with stronger data, technology, and AI skills.
“We anticipate that we will grow through AI,” he remarked. “Perhaps we won’t add staff at the same rate as in the past.”
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These remarks come at a time when Indian IT firms face challenges with diminishing discretionary spending, increasing automation, and rising demands from clients for productivity improvements using AI tools.
Despite concerns over job displacement, Jain expressed optimism about the medium-term prospects for the sector if companies successfully adapt.
“I remain hopeful and optimistic that, sector-wide, there will still be a net gain in the mid-term,” he concluded.
