Zoho’s Sridhar Vembu has warned of a fundamental reckoning in India’s software industry, arguing that inefficiencies and AI-driven disruptions are leading to a structural shift. In a post on X, Vembu stated that the industry is not just facing a cyclical downturn but a deeper transformation that will reshape the next several decades.
Vembu highlighted that inefficiencies in software products and services have accumulated over decades, creating an asset bubble that is now bursting. He pointed out that India, as a major exporter of software and IT services, has adapted to these inefficiencies, with millions of jobs tied to the sector’s continued expansion.
He cautioned that the last 30 years are not a reliable guide for the next 30 years, urging industry leaders to challenge their assumptions and rethink strategies for the future. His comments come amid concerns that AI-powered software could make development more efficient, reducing the need for large teams and potentially shrinking the economic influence of software companies, especially in India.
The warning follows weak quarterly results from major Indian IT firms like Infosys, TCS, and Wipro, which have reported declining profits and revenue growth. Analysts suggest that AI and automation, along with global trade uncertainties, are contributing to the industry’s struggles.
