The mid-sized IT service provider LTM is observing a complete collapse of junior engineer roles amid changes driven by artificial intelligence (AI). These changes affect how companies operate, the methods of service delivery, and enterprises' drive to increase efficiency across the entire value chain.
Positions typically classified as basic engineering functions (L0–L2 level) are under threat since machines began autonomously generating thousands of lines of code. The Software Development Life Cycle (SDLC) is shortening as AI consolidates multiple functions.
Gauraj Deshpande, Director of Delivery, told Business Standard that the company no longer includes L0 roles in new tender proposals. He noted that they have begun considering eliminating levels from L0 to L2 and integrating a quality AI-driven thinking process directly into the operational model.
Deshpande added that integrating AI to its full potential, using proper architecture, is fundamentally changing the rules of the game. This required creating a new set of tools, forcing them to abandon old tools and create new roles because the previous approach became unfeasible.
New required roles include AI support specialists, AI architects, and tokenomics experts, while traditional positions related to testing, maintenance, and quality assurance are becoming obsolete. Due to strong automation, human engineers are now expected to perform oversight and verification of machine operations rather than executing these tasks themselves.
According to Deshpande, an AI support specialist acts as a human in the control loop: they focus less on direct task execution and more on acting as a controller. Therefore, part of the company's operating model was focused on developing tooling and defining necessary hiring skills.
Since AI is integrated into all contracts, both new and renewed, service companies are seeking engineers with new competencies, not traditional ones. This also stimulates hiring at lower levels of the pyramid, allowing them to attract AI-focused engineers at a lower cost. For example, LTM plans to hire at least 6000 recent graduates this year, despite changes in roles, career paths, and skills.
In addition to rethinking talent, pricing models are also changing, albeit more slowly. Companies are gradually moving from the traditional 'time and materials' (T&M) model to fixed-price and outcome-based payment models. Deshpande emphasized that this transition will not happen instantly, as many clients continue to want to maintain control and insist on the T&M model, which requires constant dialogue about cooperation terms.
Regarding AI-related tariffs, he noted that discussions are ongoing. He believes that not all clients are ready to fully adopt the new tariff system, and not all wish to remain within the old tariffs. In his view, it is necessary to advocate for a position with clients, indicating that if they truly need a highly productive engineer from day one who is knowledgeable about all tools, they must be prepared to pay for it.
As of the end of the second quarter of fiscal year 27, LTM had a total workforce of 88,835 employees, and staff turnover for that quarter reached 13.3 percent.