Over the past three decades, India’s information technology sector has evolved from a niche employment avenue into one of the country’s most powerful engines of aspiration, mobility, and economic growth. What began with the software export boom of the 1990s and the Y2K surge soon transformed into an industry employing millions and generating enormous revenue. For countless middle-class Indian families, the IT sector symbolised not merely employment, but social advancement, global exposure, and financial security.

Yet the story of India’s IT revolution is no longer one of unqualified optimism. The same sector that once represented stability and progress is now being reshaped by post-pandemic corrections, automation, and the rapid rise of artificial intelligence. What was once viewed as a dream career has, for many, become a source of uncertainty, exhaustion, and anxiety.

Having witnessed this transformation closely over the years, I see the trajectory of India’s IT sector not merely as an economic story, but as a deeply human one.

The Rise of the IT Dream

I vividly remember the admission process for my son’s B.Tech programme at the College of Engineering, Trivandrum, in 2001. During an interaction with parents, the principal candidly expressed concern about the sweeping influence of the booming IT sector on engineering education. Students from every branch—civil, mechanical, electrical, and electronics—were being recruited by IT companies during campus placements. Specialisation mattered little; companies were eager to hire anyone with basic analytical skills.

Many students secured multiple offers even before completing their degrees. Once placements were confirmed, academic motivation often declined sharply. Teachers and administrators found themselves persuading students simply to complete their courses. The confidence of guaranteed employment had fundamentally altered student attitudes.

At the same time, educational institutions proudly showcased extraordinary placement records, and parents enthusiastically encouraged their children toward engineering and IT careers. The demand for IT professionals was so intense that engineering colleges mushroomed across the country.

Initially, this surge was linked to the Y2K crisis, which created an urgent need for software professionals worldwide. Yet contrary to expectations, the demand did not diminish after 2000. Instead, global outsourcing expanded rapidly, creating unprecedented opportunities for Indian graduates.

For middle-class families like ours, the transformation felt extraordinary. I still recall visiting the Infosys campus in Mysore in 2005 with my son, and again in 2009 with my daughter. The scale, infrastructure, and ambience were unlike anything we had imagined in India at the time—comparable to institutions in advanced countries.

The opportunities extended far beyond India’s borders. My son later worked in Moscow and the Philippines—possibilities that earlier generations could scarcely have imagined. The IT sector gave young Indians not only employment, but confidence, mobility, and a sense of belonging in a globalised world.

Expansion Beyond Engineering

The attraction of the IT sector soon spread beyond engineering colleges. Students in arts and science institutions increasingly pursued degrees with the singular goal of entering the IT industry. The sector became the default aspiration for educated youth across India.

This trend intensified during the COVID-19 pandemic between 2020 and 2022. As businesses worldwide shifted to digital platforms and remote operations, demand for IT professionals surged again. Employees enjoyed the flexibility of working from home while retaining stable salaries. Many saved substantially on commuting, urban rents, and daily expenses.

Recruitment processes also shifted online. However, the speed and scale of hiring sometimes compromised quality. There were widespread concerns about underqualified candidates being recruited through online interviews, occasionally aided by unethical practices during virtual assessments.

The Emergence of New Workplace Problems

The work-from-home model introduced a new set of challenges. Some employees leveraged competing job offers to negotiate higher salaries, moving frequently between companies. In extreme cases, individuals simultaneously worked for multiple employers while drawing salaries from each—something difficult for organisations to detect in a remote environment.

The pandemic period created a temporary imbalance in favour of employees. But this phase proved short-lived.

Post-Pandemic Correction and the Rise of AI

Once the pandemic subsided, the demand for IT professionals began to decline sharply. Companies that had aggressively expanded their workforce suddenly found themselves overstaffed. Organisations initiated “workforce rationalisation” exercises, eliminating employees considered underperforming or surplus to requirements.

At the same time, companies increasingly withdrew work-from-home privileges and tightened performance monitoring. Greater scrutiny, combined with slowing business growth, resulted in widespread layoffs and mounting insecurity among employees.

The year 2024 marked another major turning point with the rapid adoption of artificial intelligence. AI fundamentally altered the economics of the IT industry. Tasks that previously required large teams could now be completed faster and with fewer employees. Simultaneously, companies invested heavily in AI technologies, hoping to secure future competitiveness. However, these investments did not yield immediate returns, prompting aggressive cost-cutting measures.

As a result, workforce reductions intensified across the industry. Layoffs were no longer confined to perceived underperformers; they increasingly became target-driven exercises affecting entire teams and projects. Major global firms—including Oracle, Meta, Microsoft, Google, and Tata Consultancy Services—all became associated with workforce reductions.

For employees who remained, the workplace atmosphere changed dramatically. Fear and uncertainty became constant companions. Many worked longer hours under relentless pressure, unsure whether their jobs would survive the next restructuring cycle.

The Collapse of Work-Life Balance

What was once celebrated as a prestigious and rewarding profession gradually began to resemble an endless cycle of stress and overwork. Employees routinely sacrificed sleep, health, and family life in an effort to remain “valuable” to their organisations.

The boundaries between work and personal life steadily disappeared. Digital connectivity enabled employers to expect constant availability, regardless of time zones or weekends. The pressure to perform intensified further because employees understood that refusal or resistance could easily lead to dismissal.

At one time, Indian IT professionals were jokingly described as “techno coolies”—highly paid by Indian standards, but comparatively inexpensive labour for global corporations. Today, the term increasingly feels inadequate. Many employees experience conditions closer to “techno slavery,” characterised by perpetual availability, emotional exhaustion, and the constant fear of becoming disposable.

Weak Worker Protections

One of the defining features of the IT industry is the near absence of organised labour representation. Unlike traditional industries, the IT sector lacks strong trade unions capable of collectively negotiating employee protections.

The global and decentralised nature of IT work further complicates regulation. Employees work across countries, time zones, homes, and offices, making conventional labour oversight difficult to enforce. Exploitation today often appears less as visible physical hardship and more as psychological pressure, endless connectivity, and the erosion of personal boundaries.

There have been occasional institutional responses. In India, the National Human Rights Commission reportedly took suo motu cognisance of the Anna Sebastian case, leading labour officials to visit EY’s Pune office. Yet little has subsequently emerged in terms of visible reform or sustained intervention.

A Changing Future for Indian Youth

For more than twenty-five years, the IT sector sustained the aspirations of India’s educated youth. Today, however, those hopes appear increasingly uncertain. Many young professionals now look abroad once again—not necessarily for prestigious careers, but often for any stable employment opportunity.

This irony is particularly visible in Kerala. While the state increasingly depends on migrant labourers from North India for local work, many educated Malayali youth continue to migrate overseas in search of better-paying opportunities, even when the jobs themselves may not match their qualifications.

Why This Crisis Demands Attention

History repeatedly demonstrates that when technological progress advances faster than social protections, workers bear the heaviest cost. During the first Industrial Revolution in 19^th century, exploitative conditions eventually forced governments to introduce labour laws regulating working hours, safety, and wages. Those reforms did not hinder progress; they humanised it.

The IT industry today presents a modern version of the same dilemma. We celebrate artificial intelligence as Industrial  Revolution 5.0 [ from Steam, Electricity, Computer, Cloud to AI].

Technological advancement cannot justify the erosion of human dignity.

The fundamental principles that guided labour protections in the first Industrial Revolution remain equally relevant today:

1. Protection of workers’ physical and mental well-being
2. Reasonable limits on working hours and workload
3. Working conditions consistent with human dignity and personal life

These concerns may actually be more urgent in the digital era because work now invades spaces that were once private. Unlike factories, digital workplaces have no visible closing time. The office follows employees everywhere through phones, laptops, and constant connectivity.

The Larger Implication

The purpose of recounting this journey is not to deny the remarkable opportunities that the IT sector created for my generation and my family. It undeniably opened doors that once appeared permanently closed for ordinary middle-class Indians.

But a sector that empowered millions cannot be allowed to drift into a system sustained by fear, exhaustion, and silent disposability. Technological progress should enhance human life, not diminish it.

If the future of work is to be shaped by artificial intelligence and digital transformation, it must also be shaped by humane working conditions, accountability, and meaningful employee protections. Otherwise, what began as a dream for millions of young Indians will continue to end, quietly and painfully, as a personal nightmare.