It is about how their business is structured. The headcount is connected to billings in IT service companies. For example, a certain project could be billed as 30 ‘resources’, that is the industry parlance, multiplied by the per hour charge.
Although, it is not as if that money ever comes to the employees. It's a socio-economic reason why they hire so many and why they have such high attrition rates like 50-60 percent.
If you set aside all that, the actual technology work carried out by people at the lower ranks could easily be done by generative AI coding. There is very little creative work involved. It is all about maintenance and patching legacy systems for large clients. And, logically, that is the easiest thing to replace.
(This Article published from top news agency feed - Moneycontrol)