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‘I am pessimistic…’: Zoho’s Sridhar Vembu flags 6 key areas of concern in software job market amid AI threat | Company Business News

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by the software job market and raised concerns over artificial intelligence’s effect on the sector.u0026nbsp;”,”handpicked”:false,”audienceTags”:”tc12_f,bf05_f,bi26_f,tr01_f,tc11_f,fmrk”,”autoBackLinked”:false,”aiContent”:false,”aiContentType”:null,”removeAds”:false,”contextualKeyword”:”whatsapp1,whatsapp2,Topic_lm_14,Emo_sadness,Hour_15,Day_Tuesday,Hour_16″,”embedAmazonCount”:0,”embedCromaCount”:0,”embedFlipkartCount”:0,”embedSnapdealCount”:0,”tableOfContentsHeading”:[],”performanceArticleType”:null,”prContextualKeywords”:”PLKeywords,plc1″,”sectionId”:1544079234425,”subSectionId”:1544079274179,”typeOfFormat”:””,”crawledWidgetType”:null,”crawledWidgetData”:null,”selectedStream”:null},”isDeleted”:0,”expiryDate”:null,”listRelatedStories”:null,”type”:”story”,”relatedStories”:null,”listElement”:[{“id”:11741685469458,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eCloud-based software services major Zoho Corporation’s co-founder Sridhar Vembu, on Tuesday, March 11, raised concerns about the jobs in the software industry ahead of the upcoming artificial intelligence (AI) revolution.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685469458,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eIn a post on social media platform X, Sridhar Vembu expressed his pessimism about the software job market amid the AI takeover threat, citing reasons such as “massive over-capacity” and the failure to remove people with inefficiencies.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685468925,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:””,”paywallElement”:false,”alsoReadStories”:{“11740307791515″:”Zoho’s Sridhar Vembu takes swipe at ‘overpriced’ DocuSign – Here’s why”},”alsoReadStoryIdList”:[11740307791515],”alsoReadStoriesUrl”:{“11740307791515″:”/companies/zoho-co-founder-sridhar-vembu-hits-out-at-bloated-docusigns-overpriced-model-do-not-need-11740307791515.html”}},{“id”:11741686459498,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“That is why I am pessimistic about the software job market, even before accounting for AI,” u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/news/trends/liverdoc-slams-zoho-ceo-sridhar-vembu-for-backing-iit-madras-directors-gomutra-claim-calls-him-boomer-uncle-11737546246541.html”u003eSridhar Vembuu003c/au003e said in his post.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741686457244,”articleType”:”element”,”name”:”paragraph”,”title”:”Sridhar Vembu”,”type”:”image”,”subType”:””,”paywallElement”:false,”image”:{“images”:{“270×480″:null,”600×338″:null,”optimize”:”https://www.livemint.com/lm-img/img/2025/03/11/optimize/Screenshot_2025-03-11_151717_1741686456663_1741686457027.png”,”mediumImage”:””,”bigImage”:”https://www.livemint.com/lm-img/img/2025/03/11/original/Screenshot_2025-03-11_151717_1741686456663.png”,”140×140″:null,”thumbnailImage”:””,”900×1600″:”https://www.livemint.com/lm-img/img/2025/03/11/original/Screenshot_2025-03-11_151717_1741686456663.png”,”fullImage”:””,”248×186″:null},”caption”:”Sridhar Vembu’s post on X”,”name”:””,”alternateText”:””,”imageCredit”:”X/Sridhar Vembu”,”overImage”:false,”verticalImage”:false,”width”:592,”height”:537,”imageUrl”:null}},{“id”:11741685487013,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eOver-capacity concernsu003c/h2u003eu003cpu003eThe 57-year-old entrepreneur focused on a few key concerns looming over the software job market after spending nearly 30 years in the industry and formerly being the CEO of u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/news/zoho-corp-plans-to-make-public-two-of-its-foundational-models-this-year-11741012842690.html”u003eZoho Corpu003c/au003e.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685487013,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eSridhar Vembu highlighted the current situation of a “massive over-capacity” which has steadily developed in the software companies due to an influx of venture capitalists (VCs), private equity (PE) investors and Indian stock market (IPO) money.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685487013,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eVembu highlighted the flood of money into the u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/topic/it-sector”u003eIT sectoru003c/au003e, which was unleashed due to the global pandemic. But those reserves are gone as of now.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685487013,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“Those floods are now history and we have a serious drought,” he said.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685486732,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:””,”paywallElement”:false,”alsoReadStories”:{“11739711655157″:”Zoho CEO Vembu warns of higher inflation risk after Trump’s tariff threats”},”alsoReadStoryIdList”:[11739711655157],”alsoReadStoriesUrl”:{“11739711655157″:”/news/india/zohos-sridhar-vembu-raises-concerns-of-higher-inflation-after-donald-trump-s-reciprocal-tariffs-threat-11739711655157.html”}},{“id”:11741685502125,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eFOMO concernsu003c/h2u003eu003cpu003eThe former CEO also focused on the second aspect, i.e., the rising u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/company-results/it-sector-q3-results-preview-from-revenue-growth-to-margins-how-tcs-infosys-wipro-other-top-it-firms-may-perform-11735806612688.html”u003eIT spendingu003c/au003e over the emotion of not “lagging” behind competitors.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685502125,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“Software vendors applied liberal doses of marketing spending to spread Fear (of missing out) and Uncertainty (‘tech is changing, you need us’) and Doubt (‘are you confused? trust us’) among corporate customers and the result was ever growing IT spending,” said Vembu in his post on X.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685502125,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eVembu related this with the Western nations and how they have “layers and layers of duplicated IT systems” for which they spend a lot of money to make them work together.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685502125,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eThis move contributes to the cost of operations, and these huge “inefficient” IT systems tend to become a permanent resource for which the firms have to spend more human resources and u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/topic/money”u003emoneyu003c/au003e.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685501952,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:””,”paywallElement”:false,”alsoReadStories”:{“11738854201624″:”Zoho’s Sridhar Vembu urges entrepreneurs to ‘think rural’ for untapped talent”},”alsoReadStoryIdList”:[11738854201624],”alsoReadStoriesUrl”:{“11738854201624″:”/companies/people/zohos-sridhar-vembu-urges-entrepreneurs-to-think-rural-for-untapped-talent-11738854201624.html”}},{“id”:11741685526463,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eTransferring Inefficiency to Indiau003c/h2u003eu003cpu003eAccording to Vembu’s post, IT majors in Western nations have solved their “inefficiency” problem. They started outsourcing or transferring those inefficiencies to u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/news/tata-technologies-investigates-ransomware-attack-after-temporarily-halting-it-services-11738292950210.html”u003eIT servicesu003c/au003e firms in India, and by the time they arrived, the inefficiencies would multiply 3 to 4 times.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685526463,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“That ‘multiplied inefficiency’ happened because IT budgets were kept fixed in dollar terms, and more people got hired in India to ‘get more done’,” said Vembu in his post.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685526463,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eVembu also stated that as a result of this, the large number of IT jobs in the nation became dependent on those “original inefficiencies and the multiplied inefficiencies”.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741685526274,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:””,”paywallElement”:false,”alsoReadStories”:{“11737973419361″:”Sridhar Vembu steps aside as Zoho CEO to embrace ‘Chief Scientist’ role”},”alsoReadStoryIdList”:[11737973419361],”alsoReadStoriesUrl”:{“11737973419361″:”/companies/people/sridhar-vembu-resigns-as-ceo-of-zoho-corp-takes-on-new-role-as-chief-scientist-11737973419361.html”}},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eBanks’ spending budgetu003c/h2u003eu003cpu003eThe u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/zoho-co-founder-sridhar-vembu-hits-out-at-bloated-docusigns-overpriced-model-do-not-need-11740307791515.html”u003eZoho co-founderu003c/au003e said that banks and financial institutions in India spend far less than those in the United States. This constraint of not having a huge budget to spend made the firms “highly efficient” and equipped to battle foreign competition.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“Indian firms did not have the budgets to splurge! Necessity made them highly efficient and today India’s financial institutions are able to fend off foreign competition easily,” Vembu opined.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eEfficiencyu003c/h2u003eu003cpu003eu003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/people/sridhar-vembu-plans-on-joining-politics-burst-out-laughing-zoho-business-startup-india-news-no-discussion-time-scientist-11738206044369.html”u003eSridhar Vembuu003c/au003e also addressed the efficiency factor, pointing out that a two-person team can “solidly outperform” a team with 20 people because of efficiency and talent.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“This is not just due to talent disparity – even when the large teams have equivalent talented people, they can easily end up being wasted on unproductive projects,” Vembu noted.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eEmployee billingsu0026nbsp;u003c/h2u003eu003cpu003eHe highlighted the “zero u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/news/us-news/sec-layoffs-us-capital-markets-regulator-offers-50-000-to-employees-as-incentive-amid-federal-job-cuts-11741085657205.html”u003eincentiveu003c/au003e” for heads to remove inefficiencies, underscoring that people are billing by the hour they work or by the staff month (input metrics), which hinders two people from working as efficiently as a team of 20.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“It is those multiplied inefficiencies in IT, built up over decades, that is facing a reckoning now,” said Vembu.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eOn the AI takeover front, Vembu stated that a large amount of code “is boilerplate code in many projects and AI can eat such code for breakfast”. Depending on the nature of a project, AI can offer 10-20 per cent productivity gains, he observed.u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11741682588474,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003e“Significant but not the 10x or 100x leap yet to destroy jobs on a vast scale,” said the Zoho co-founder, adding that the AI gains of today look “pale” in comparison with the “multiplied inefficiencies” built up over decades.u0026nbsp;u003c/pu003e”},”bgParaColor”:{“name”:””,”code”:””},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false}],”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false,”headline”:”‘I am pessimistic…’: Zoho’s Sridhar Vembu flags 6 key areas of concern in software job market amid AI threat”,”summary”:”Zoho co-founder Sridhar Vembu flagged challenges faced by the software job market and raised concerns over artificial intelligence’s effect on the sector.u0026nbsp;”,”quickReadSummary”:””,”mobileHeadline”:”‘I am pessimistic’: Zoho’s Sridhar Vembu flags 6 IT market issues amid AI threat”,”leadMedia”:{“id”:null,”mediaType”:””,”elements”:[11741686129922],”image”:{“images”:{“270×480″:null,”600×338″:”https://blog.recruitology.com/wp-content/uploads/2025/03/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220-1.jpg”,”optimize”:”https://www.livemint.com/lm-img/img/2025/03/11/optimize/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686129753.jpg”,”mediumImage”:”https://www.livemint.com/lm-img/img/2025/03/11/250×250/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220.jpg”,”bigImage”:”https://blog.recruitology.com/wp-content/uploads/2025/03/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220-1.jpg”,”140×140″:”https://www.livemint.com/lm-img/img/2025/03/11/140×140/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220.jpg”,”thumbnailImage”:”https://www.livemint.com/lm-img/img/2025/03/11/90×90/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220.jpg”,”900×1600″:”https://www.livemint.com/lm-img/img/2025/03/11/original/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220.jpg”,”fullImage”:”https://www.livemint.com/lm-img/img/2025/03/11/960×540/3-0-106795011-Sridhar-Vembu-0_1679847332913_1741686144220.jpg”,”248×186″:null},”caption”:”Zoho’s Sridhar Vembu flagged his concerns about the software job market amid threats from AI. “,”name”:””,”alternateText”:””,”imageCredit”:””,”overImage”:false,”verticalImage”:false,”width”:4480,”height”:6113,”imageUrl”:””},”video”:null},”timeToRead”:3,”introBody”:””,”related”:[],”showRelated”:false,”paywallElement”:false,”twoLinerText”:”Catch all the u003ca href=”https://www.livemint.com/”u003eBusiness News u003c/au003e, u003ca href=”https://www.livemint.com/companies” u003e Corporate news u003c/au003e, u003ca href=”https://www.livemint.com/news”u003eBreaking News u003c/au003eEvents and u003ca href=”https://www.livemint.com/latest-news”u003eLatest News u003c/au003e Updates on Live Mint. 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