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Manoj Deshmukh
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Essay · 29 Jul 2025 · 2 min read

🏠 Renovating IT Services: How AI Is Reshaping the Industry

By Manoj Deshmukh
🏠 Renovating IT Services: How AI Is Reshaping the Industry

A few days ago, the news of TCS layoffs created a storm across India. For decades, TCS has been seen as a company where one could “retire.” The fact that even the biggest IT bellwether isn’t immune shows the depth of change AI is driving.

I’ve been in the IT industry for over 25+ years, and I can confidently say this: AI is not a small shift. It’s a disruptive renovation of the entire IT services sector.


AI Is Rewriting the IT Lifecycle

From what I’ve seen hands-on, AI isn’t just about code generation anymore. It is influencing the complete software lifecycle including but not limited to below:

  • Estimations and solution design

  • Proposal preparation

  • Code generation and testing

  • CI/CD and deployment

  • Business analysis and task management

Tools are evolving at an alarming rate and are surprisingly good at what they do.

So, how should we think about this transformation?


The House Renovation Analogy

Imagine your IT services model as a house that was built a few decades ago. Over time, styles have changed, space has become precious, and new gadgets make life easier.

When you renovate:

  • 🛋️ Bulky furniture consuming space → You discard it. Similarly, roles that are repetitive and high-maintenance will disappear.

  • đź”§ Old furniture that just needs polishing → You keep it with minor modifications. Just like legacy skills that can be reskilled with AI support.

  • 🏺 Rare antiques → You preserve them with pride. In IT, these are the niche, deep expertise areas that will continue to hold value.

  • ✨ Modern additions → Smart appliances, new layouts, efficient designs. These represent new AI-driven skills—prompt engineering, AI governance, ethical frameworks, data-centric roles.

The result? A renewed house that keeps its essence but becomes more functional, efficient, and relevant.


Employment: Contradictory Views, Clear Direction

Yes, AI is reducing the need for armies of coders who work on repetitive tasks. But it is also creating demand for new skills:

  • AI model integration

  • Data strategy and governance

  • Business domain specialization

  • Product thinking

I’ve seen this firsthand—projects that used to need 10 people can now be delivered by 4–5 strong engineers plus AI copilots. Efficiency is up, but so are expectations from individuals.


My Takeaway

This AI wave is an upside change. Some parts of the old system will be discarded, some repaired, some preserved, and plenty of new capabilities will be added.

The choice in front of each of us is clear:

👉 Do we cling to the old house as it is?

👉 Or do we embrace the renovation and make it future-ready?


💬 I’d love to hear your thoughts:

  • Do you see AI as a threat to jobs, or as a renovation opportunity for the IT services model?

  • What would you “preserve, repair, or replace” in your professional toolkit?

First published on LinkedIn.

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