Zoho founder Sridhar Vembu says India’s IT industry, including Zoho, has largely stopped creating new jobs. In a post on X he noted the company has not laid people off, yet it is not adding many roles either. He called job creation for India’s large youth population the real national challenge. Money that once went to new hires is now spent on AI tools and data centres. Server and memory prices have risen sharply, and much of that cost sits outside company control. Vembu also asked whether an already crowded software market needs even more code produced faster by AI. He said software is turning into a commodity focused on quality, reliability and brand, so growth slows. Enterprise customers are shifting their own IT budgets toward AI. He questioned whether other industries can generate enough jobs as automation spreads, and noted some see universal basic income as one possible answer.
Zoho founder Sridhar Vembu says India’s IT industry, including Zoho, has largely stopped creating new jobs. In a post on X he noted the company has not laid people off, yet it is not adding many roles either. He called job creation for India’s large youth population the real national challenge. Money that once went to new hires is now spent on AI tools and data centres. Server and memory prices have risen sharply, and much of that cost sits outside company control. Vembu also asked whether an already crowded software market needs even more code produced faster by AI. He said software is turning into a commodity focused on quality, reliability and brand, so growth slows. Enterprise customers are shifting their own IT budgets toward AI. He questioned whether other industries can generate enough jobs as automation spreads, and noted some see universal basic income as one possible answer.