Zoho Corporation founder Sridhar Vembu has issued a stark warning that the information technology sector is failing to create new jobs as capital is increasingly diverted toward artificial intelligence infrastructure and data center costs.
Vembu, who also serves as the company's chief scientist, argued that the industry's current spending priorities are undermining its traditional role as a major employer and software producer.
The comments highlight a growing tension within the tech sector between the massive capital expenditure required for AI hardware and the human-centric service models that have defined the industry for decades.
Vembu questioned whether the current trajectory of software production remains sustainable when resources are funneled into data centers rather than talent development.
This perspective adds to a broader debate about the economic impact of the AI boom.
While some analysts, such as Axis Bank's Neelkanth Mishra, have dismissed fears of widespread job losses in India's IT sector as misplaced, Vembu's remarks suggest that the structural shift may be more profound than previously acknowledged.