India’s largest IT services companies, TCS, Infosys, Wipro, HCLTech, and Tech Mahindra, are witnessing a dramatic shift in hiring trends, with fresher intakes collapsing to just 4,787 in Q1 FY26 from over 50,000 in FY21. This reflects a deepening reliance on artificial intelligence, cloud platforms, and cybersecurity automation that’s replacing routine tech jobs.
According to a report by The Economic Times, “Net employee additions at the top five firms barely crossed 4,700 in the June quarter, a far cry from the 50,000-plus levels seen just two years ago.”
TCS alone contributed the majority of hires with 6,071, but the overall net was pulled down by declines at other firms:
HCLTech: Reduced headcount by 269Wipro: Down by 114Tech Mahindra: Down by 1,111
The rise of AI-enabled tools for handling Level 1 and Level 2 support has severely dented the demand for entry-level talent. Instead, companies are looking for mid-career professionals with deep capabilities in AI, cloud computing, cybersecurity, and full-stack development. “Traditional metrics like net hiring and utilisation no longer reflect growth in the IT services industry,” said Ramkumar Ramamoorthy, partner at tech advisory firm Catalincs, to The Economic Times.
“There is an urgent need for India to reimagine its higher education system… with emphasis on applied problem-solving, interdisciplinary thinking, creativity, and adaptability.”
Fewer Campuses, More Contracts
Where IT majors once hired freshers in bulk through campus placements, today’s hiring is sporadic and triggered mostly by large, digital transformation contracts. This transition has left many new graduates struggling to land their first jobs, amidst fewer openings and higher competition.
The trend is also visible in year-over-year comparisons:
FY22 Q1: Nearly 60,000FY23 Q1: Around 22,000FY26 Q1: Under 5,000
Industry insiders believe this is not a short-term phenomenon, but a structural change in how Indian IT will grow, leaner, sharper, and more skill-specific.
Why It Matters
This collapse in fresher hiring could have serious economic and social implications. India’s engineering colleges continue to produce lakhs of graduates annually. Without enough entry-level roles, the employability crisis is set to worsen unless education and industry align on evolving tech requirements.
A recent Nasscom-McKinsey report also hinted at the same: “The Indian tech workforce will need to be reskilled every 3–5 years to stay relevant in the age of automation and GenAI.”