The tech sector jobs have been a point of discussion lately amidst concerns about AI-led disruption. As the key IT companies declared their Q4 results, one key factor that the street was watching out for was the commentary on new recruitment along with their growth forecast. Most analysts believe that while the worst of the restructuring is done, hiring is unlikely to see a sharp rebound. It is expected to see a gradual upward trajectory going forward.
Net headcount of key tech sector companies at the end of FY26
Before we proceed any further here is a quick look at the headcount at the end of Q4FY26.
Wipro: Net headcount stood at 2,42,156 at the end of FY26, from 2,33,346 employees in FY25. However, even though Wipro’s headcount increased by 8,810 employees in Q4, the attrition rate is still high at of 13.8% in Q4 and 14.2% in Q3FY26.
Infosys: The headcount stood at 3,28,594 in FY26, which is a slight increase on yearly basis from 3,23,578 in FY25. However, on a sequential basis it sees a decline from 3,37,034 reported in Q3FY26, coinciding with the heightened GenAI fear in the quarter which resulted in the sharp correction of the stock.
TCS: TCS trimmed nearly 2% of its workforce in FY26, after which its total headcount is at 584,519, down from 607,979 reported in FY25.
HCLTech: The net headcount stood at 2,27,181 employees which shows a net addition of 3,761 employees in FY26 from 2,23,420 in FY25.
Tech sector set to see incremental hiring increase in FY27
Speaking on the overall headcount addition and hiring trend in the tech sector, Sumit Pokharna, VP – Fundamental Research at Kotak Securities said that the IT sector may see incremental hiring and net addition while focusing on skilled and talented people.
Kuber Chauhan, research analysts at Axis Securities also believes that hiring is expected to recover only gradually and remain uneven rather than witnessing a sharp rebound.
IT sector to focus on skill-based recruitment, shifts from over-hiring
Commenting on the IT firms hiring freshers and trimming the existing workforce along with upskiling youth, Pokharna said,”I believe most of the required trimming has already been done. Going forward, incremental hiring is likely to happen at these firms, especially in areas related to AI. You may also see higher demand for employees who have upskilled themselves to meet current requirements.”
Pokharna explained that , the IT industry is moving from a phase of over-hiring to more cautious, skill-focused recruitment.
“The IT industry has seen significant fluctuations in hiring in recent years. During COVID, companies hired aggressively, anticipating strong demand. However, as that demand did not fully materialise, companies had excess talent and began trimming their workforce due to lower business spending. Now, with the rise of AI, the nature of work itself is changing. This is influencing hiring patterns, with a greater focus on specialised and upskilled talent,” Phe added.
Chauhan of Axis Securities added the fresher hiring model is evolving, with companies prioritising deployable, skill-ready talent over large-scale intake. “The Indian tech firms are going through a transition from a traditional ‘people-led growth’ model to a ‘productivity-led growth’ framework. Rather than hiring at a mass level, these firms are prioritising employees with niche skills expertise.” Chauhan added.
TCS likely to see net employee additions over 3 years Kotak sees net addition in TCS headcount
The TCS layoffs and employee restructuring has been making headlines for most of FY26. But the company was emphatic in announcing that the restructuring is now complete at the Q4 earnings call.
Sumit Pokharna, VP – Fundamental Research at Kotak Securities, said he expects to see “net additions to TCS’ employee base going forward. Based on our estimates, net hiring could be around 13,000–15,000 in FY27, about 20,000 in FY28, and around 27,000–28,000 in FY29.”
He expects TCS net additions, “Totalling to approximately 618,000 employees in 3 years from current levels now.”
Axis Securities’ Chauhan, reiterated that TCS’ future actions will be more incremental and continuous rather than event-driven. “We believe that company is expected to represent a phase of stabilisation and fine-tuning rather than another major restructuring cycle.” he noted.
Conclusion: Workforce dip a structural shift in IT sector
Tech sector experts believes that India’s IT services industry is undergoing a fundamental transformation from a labour arbitrage-driven model to a more technology and platform-led services paradigm, which will have lasting implications for hiring, margins, and growth strategies.
“The net headcount decline reported by Indian IT firms in FY26 should not be interpreted purely as a demand slowdown, but rather as a structural shift in the operating model of the industry,” Chauhan of Axis Securities said.
Going forward most experts are forecasting a calibrated uptick in net employee additions across the IT sector. However, it is expected to be more skill-based.