India’s largest IT services companies have all but frozen net hiring, adding just 17 employees collectively during the first nine months of FY26, signalling a sharp slowdown in workforce expansion across the sector.
The data, reported by The Economic Times, shows a dramatic contrast with the same period last year, when the top five firms added 17,764 employees. The near-flat headcount reflects tightening client demand, reduced discretionary technology spending and the growing use of AI-led delivery models that are curbing the need for fresh hiring.
The slowdown spans Tata Consultancy Services, Infosys, Wipro, HCLTech and Tech Mahindra—companies that have traditionally absorbed large numbers of engineering graduates each year. The data also suggests that whatever marginal gains were recorded were largely driven by mergers and acquisitions; excluding these, several firms would have posted flat or negative net additions.
TCS accounted for the largest drag on industry numbers. India’s biggest software exporter cut its workforce by 25,816 employees over the nine-month period as part of a plan to reduce about 2% of its headcount. The Times of India reported that more than 12,000 of these exits were at the mid- and senior-management levels.
The trend intensified in the December quarter. According to the data cited by The Economic Times, the combined workforce of the top five firms fell by 2,174 employees during the quarter. While Infosys and Wipro added 5,043 and 6,529 staff respectively, those gains were outweighed by TCS, which shed 11,151 employees over the same period.
The prolonged hiring pause has raised concerns for India’s engineering graduate pipeline, which has historically relied on large IT firms for entry-level employment. Campus hiring has slowed sharply, and onboarding timelines have stretched as companies recalibrate workforce needs.
At the same time, the broader technology employment market may be approaching an inflection point. Workforce solutions provider Adecco India has projected that overall tech hiring—including permanent, temporary and contractual roles—could grow 12–15% in 2026, adding close to 125,000 jobs, NDTV Profit reported.
According to Adecco, demand is increasingly shifting beyond traditional IT services, with non-tech sectors such as BFSI, healthcare, manufacturing and logistics driving nearly 38% of tech-focused hiring. Roles in AI engineering, cloud transformation, cybersecurity and data platforms are expected to see increased traction as companies move from pilot programmes to full-scale deployment.
While near-term hiring at India’s IT majors remains subdued, the data suggests the sector is entering a transition phase—one where headcount growth may be slower, more selective and increasingly skewed towards specialised digital skills rather than large-scale fresher intake.