India’s Top IT Firms Slash Fresher Hires Amid AI Shift
Demand for Specialists Surges as Automation Handles Entry-Level Tasks
India’s major IT corporations are significantly curtailing recruitment of fresh graduates, signaling a profound shift towards hiring seasoned domain specialists. This recalibration reflects persistent uncertainty in market demand and the increasing capability of artificial intelligence to manage foundational technical operations.
IT Sector’s Recruitment Strategy Evolves
The country’s top five IT services companies—TCS, Infosys, Wipro, HCLTech, and Tech Mahindra—collectively onboarded a mere 4,787 new employees in the June quarter. This figure represents a stark contrast to previous years, with TCS leading new additions at 6,071. However, Infosys added only 210, while HCLTech, Wipro, and Tech Mahindra saw net employee reductions of 269, 114, and 1,111, respectively. This trend underscores the growing preference for experienced professionals possessing cross-functional, full-stack capabilities that can be integrated across diverse teams.
Dramatic Decline in Graduate Intake
The hiring numbers for the June quarter reveal a sharp downturn compared to the pandemic-influenced periods. In the June quarter of fiscal year 2021, the same group of companies recorded net additions of 53,652 employees. This figure dropped to 59,704 in FY2022-23 and then further to 21,838 in the June quarter of FY2023-24. The current contraction is largely driven by Wipro, Infosys, and Tech Mahindra.
“Traditional metrics like net hiring and utilisation no longer reflect growth in the IT services industry. These numbers also carry social implications. In the context of AI and digital, there is an urgent need for India to reimagine its higher education system. We need to emphasise applied problem-solving, interdisciplinary thinking, creativity, and adaptability to remain relevant.”
—Ramkumar Ramamoorthy, Partner at technology advisory firm Catalincs
AI and Cloud Drive Specialized Hiring
Industry analysts indicate that current hiring efforts are heavily concentrated in high-demand areas such as artificial intelligence, cloud computing, and cybersecurity. This specialized recruitment is primarily fueled by significant new contract wins. For context, the global IT services market is projected to grow to $1.5 trillion by 2027, according to Statista, indicating continued demand for skilled IT professionals in specific domains.