TLDR: ServiceNow India’s leadership suggests that the widespread adoption of AI agents will significantly alter the landscape of the Indian IT sector, potentially leading to a reduction in the number of unassigned IT professionals, or the ‘bench.’ This shift is driven by AI’s ability to redefine millions of jobs and enhance productivity, necessitating a massive upskilling effort.
The Indian IT sector is on the cusp of a significant transformation, with artificial intelligence (AI) agents expected to play a pivotal role in reshaping the workforce, according to insights from ServiceNow’s India leadership. The adoption of AI is anticipated to lead to a more efficient allocation of talent, potentially shrinking the traditional ‘bench’ of unassigned IT professionals.
A recent 2025 Workforce Skills Report by ServiceNow and Pearson highlights the profound impact of AI, projecting that agentic AI will redefine 10.35 million Indian jobs within the next five years. Despite this redefinition, the report also forecasts the creation of nearly 3 million new tech jobs in India’s economy, driven by factors such as the demand for Global Capability Centers and rapid nationwide digitization.
ServiceNow emphasizes that for India to fully capitalize on its demographic dividend and avert a potential economic crisis, enterprises must prioritize upskilling their workforce to leverage new technologies. The ServiceNow Enterprise AI Maturity Index 2025 reveals that a substantial 68% of Indian enterprises are still in the preliminary stages of identifying the necessary skills for their AI strategies. Furthermore, a significant concern among employees is job displacement, with 57% of Indian business leaders reporting that their employees fear losing their jobs to AI – figures among the highest globally.
To mitigate these anxieties and foster a productive transition, ServiceNow advocates for an AI-centric business model that empowers rather than replaces human workers. This approach aims to close productivity gaps and maximize individual employee impact on operations, revenues, and market share. Personalized and scalable upskilling initiatives, facilitated by AI, are deemed crucial for this transition, especially as the competition for skilled talent intensifies.
The research also points to organizational fragmentation and data security as major hurdles. Only 42% of Indian leaders strongly agree on a cohesive AI strategy across departments, and despite investments in data infrastructure, only 54% have made significant progress in connecting data and operational silos. A notable 67% of enterprises are developing and deploying AI through multiple internal task forces, risking innovation being trapped in isolated efforts.
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ServiceNow stresses the importance of human-AI collaboration. Their research indicates that 53% of Indian enterprises that reinvented workflows for better human-AI collaboration experienced significant revenue growth, compared to 37% that merely enhanced existing processes with AI. This necessitates upskilling beyond technical AI proficiency, focusing on uniquely human skills like creativity and critical thinking. Leaders are urged to cultivate an environment that encourages experimentation and development of AI solutions to optimize India’s demographic dividend, build workforce trust, and strengthen the nation’s economic resilience.
