Sridhar Vembu’s AI Warning: Software Costs Are Exploding, IT Jobs Look Grim.

By NDTV Profit

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AI was supposed to make software cheaper, businesses more efficient and workers more productive. So why are software costs exploding — and what does this mean for jobs in India's IT industry? Zoho co-founder Sridhar Vembu has issued a stark warning about the software industry's uncertain outlook, rising AI expenses and the future of technology jobs. In his October 13 post on X, Vembu said Zoho had cut its marketing budget, had not increased its employee count in 18 months, and would not provide its usual annual salary increases this year. He also flagged a fourfold increase in server prices and rapidly rising AI costs. But this is bigger than Zoho. In this NDTV Profit explainer, we examine why AI adoption is becoming an expensive business challenge, how rising data-centre and computing costs could squeeze software companies, and why employment prospects across India's technology sector are attracting fresh concern. We also revisit Vembu's earlier comments on software-sector job lo

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