India’s information technology industry is at a watershed moment. Automation—driven by advances in artificial intelligence, including agentic AI—is rapidly redefining traditional roles and responsibilities. Nowhere is this transformation more visible than in software testing, one of the most structured functions in the software development lifecycle. Unless professionals in this space upskill or pivot, they risk being rendered obsolete.
AI-driven tools are taking over repetitive, rule-based testing tasks that were once handled by quality assurance (QA) and quality control (QC) personnel. According to staffing firm Xpheno, about 40% of the testing workforce—comprising test engineers, application testers, QA testers, software test engineers, and QA engineers—perform functions that are now highly susceptible to automation. India currently has around 375,000 professionals employed in testing and QA/QC functions across experience levels, but growth in this talent pool has stagnated, registering under 1% net growth in the year leading up to April 30.
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According to EY India’s 2025 survey, the integration of generative AI (GenAI) into the country’s $254-billion IT sector is projected to enhance productivity by 43% to 45% over the next five years. This surge is primarily attributed to the internal adoption of GenAI within IT firms and its increasing deployment in client projects. Notably, software development roles are expected to witness a productivity boost of approximately 60%, while BPO services and IT consulting could see improvements of 52% and 47%, respectively.
Automation disrupts the testing pyramid
The stagnation stems from hiring patterns that are skewed towards junior roles—those with less than six years of experience. Meanwhile, hiring at mid-to-senior levels has either plateaued or declined, primarily due to companies not backfilling vacancies from natural attrition. The pause is due to a wait-and-watch strategy, according to Kamal Karanth, co-founder of Xpheno. Companies are waiting to gauge the full extent of AI’s impact before making new long-term commitments.
The implications are already playing out. IBM has reportedly begun replacing sections of its human resources staff with AI agents to automate routine tasks, with 200 roles phased out so far. DBS Bank has projected that automation may lead to a 10% workforce reduction over three years, potentially cutting 4,000 jobs.
Where jobs are growing, and where they’re not
But not all roles face extinction. While legacy, execution-based roles are on the chopping block, demand is rising for higher-value roles in test architecture, governance, strategy, consulting, and analytics. According to Neeti Sharma, CEO of TeamLease Digital, the shift is most visible in executing tests and designing frameworks and tools. However, those creating platforms and tools remain immune to automation. Even at IBM, the overall workforce has grown as the company hires more in software engineering, marketing, and sales—domains where creativity, human judgment, and interpersonal skills remain irreplaceable.
In effect, the bottom 40% of the testing talent pyramid is under the most pressure. Analysts forecast that most entry-level testing roles could disappear within two to five years as AI tools mature and adoption deepens. For employees, the message is clear: move up the value chain through reskilling—or risk becoming redundant.
However, this technological advancement brings challenges. A study by the Indian Institute of Management, Ahmedabad, indicates that 68% of white-collar employees anticipate partial or full automation of their roles within five years, with 40% fearing their current skills may become obsolete. To address these concerns, Indian IT firms are investing in upskilling programs, focusing on areas like AI development, data science, and cybersecurity. This strategic shift aims to transition the workforce from routine tasks to more specialised, high-value roles, ensuring resilience in the evolving digital landscape.
Paradoxically, while the testing function is a key contributor to IT companies’ top lines, most firms do not disclose QA/QC revenues as a standalone item. Analysts, however, agree it is among the earliest and most obvious candidates for automation—a “low-hanging fruit” in the digital transformation of IT services. The future of this function likely lies in integration with broader AI coding platforms, led by AI-first firms.
Popular tools like Selenium, Cypress, Playwright, and Appium are already reducing engineers’ workload, allowing them to focus on “test strategy” rather than “fixing broken scripts,” as noted in a recent blog by Nasscom, India’s apex IT industry body.
Cybersecurity: India’s next big opportunity in AI
Importantly, the AI revolution is not just about disruption—it is also about opportunity. One area of immense potential is AI-powered cybersecurity. As cyber threats grow more sophisticated, the Indian IT and BPM (Business Process Management) sectors are betting on AI to deliver faster, real-time detection and response mechanisms. A Nasscom report underscores that AI’s application in cybersecurity could be a game-changer, enabling Indian companies to offer advanced security solutions globally.
With AI algorithms capable of parsing massive datasets and identifying anomalies in real time, these systems are essential to pre-empting and mitigating cyberattacks. Unlike traditional security approaches, AI systems offer proactive threat detection and response—critical in an era of growing digital risk.
Yet, the road ahead is not without challenges. The speed of technological change demands relentless reskilling. Companies will need to invest heavily in training programs and foster a culture of continuous learning to ensure employees stay relevant. It’s not just about preserving jobs—it’s about preparing the workforce for the next frontier in India’s digital economy.