Cognizant Technology Solutions is witnessing a profound shift in its workforce dynamics, driven by the strategic deployment of Artificial Intelligence and automation across operations. According to CEO Ravi Kumar, the IT services giant has freed up around 12,000 roles through AI initiatives as it retools its talent strategy and adapts to evolving technology trends.
Roughly 14,000 former employees have rejoined, with another 20,000 queued up to follow, reflecting increasing fondness for the company’s re-directed vision and capability.
Kumar revealed this during the company’s recent Investor Day event held in the US, stating that “former employees constitute 5-7% of their lateral hires,” indicating that Cognizant is becoming an attractive destination for seasoned professionals looking to return.
AI and Jevons Paradox
One of the primary drivers of the changes is the firm’s vigorous drive towards incorporating AI. “With 20% of code being written by machines, the teams can deliver more tasks using fewer people,” Kumar told The Times of India in an interview. He associated this phenomenon with Jevons Paradox, an economic phenomenon whereby greater efficiency in the usage of resources leads to a higher demand paradoxically. Here, as AI streamlines programming, it makes space for upper-level work and can even raise overall workload levels.
Future of Headcount Growth
While these technological advancements have introduced efficiencies, they also reshaped traditional human capital planning. Cognizant’s Chief Financial Officer, Jatin Dalal, was cautious in projecting future headcount numbers. “Headcount growth is something we would probably not hazard because it’s a three-year journey. We are talking about 20% of the code coming through AI. This is an evolving world.”
Dalal added, “However, I think one thing is certain: every incremental outcome you generate will require less human effort than what we are traditionally used to. In a high-growth, discretionary-led scenario, it is more onsite-centric growth, whereas more cost-based growth is through offshore.”
Workforce Re-skilling in the Age of AI
As work itself undergoes a metamorphosis, so does the requirement for skill. Cognizant itself has already prepared more than 2.3 lakh employees across AI-related technology, making the company’s worker base relevant and competitive. The magnitude of the upskilling reflects the readiness of the organization to gear up for the world of AI in place of automated job replacement.
The combination of AI-enabled efficiency, returnee hiring, and a massive internal reskilling effort positions Cognizant uniquely in the rapidly shifting IT services landscape. With a pragmatic approach toward human and machine collaboration, the company is navigating the future of work with foresight—and a growing cadre of loyal former employees.
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