Zoho Founder Sridhar Vembu: AI Costs Slow IT Hiring in India

Zoho Corporation founder and chief scientist Sridhar Vembu warned that funds that would normally support new hires in the Indian IT sector are increasingly being redirected to artificial‑intelligence projects and data‑centre infrastructure, as server and memory prices surge. He noted that Zoho has avoided large‑scale layoffs but has not added many new employees in recent years, reflecting a broader industry trend.

Vembu questioned whether faster software development driven by AI translates into greater demand, pointing to an oversaturated global software market and a shift toward quality, reliability and brand reputation. He also highlighted that enterprise customers are moving their own technology budgets toward AI, while many AI firms are investing heavily in capex without clear profit prospects. The broader economic concern, he said, is how the Indian economy will create enough jobs for its growing youth population amid automation and rising costs, with suggestions ranging from structural reforms to universal basic income measures.