Muted IT hiring to focus on skill-driven freshers
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ETtech
Despite soft peddling on hiring mid and senior level employees, software services firms are set to hire cautiously with a focus on skill-driven freshers that is estimated to grow 3-5% compared to the first half (H1) of the year, recruitment experts said.A large part of the new hiring is likely to be focused around junior and entry level positions driven by lesser employee expenses and a steeper learning curve.'Hiring may remain muted in H2 unless there is a clear uptick in client spending. Lateral hiring will be need-based, while fresh hiring could be calibrated to future deal visibility. Overall, H2 may see 3–5% hiring growth compared to H1, driven largely by demand for AI, cloud, and platform roles,' said Neeti Sharma, chief executive officer at mass staffing firm Teamlease Digital.Sharma said the hiring is concentrated at junior and niche mid-levels with in-demand skills.While the ongoing trade and macro uncertainties have slowed down business demand with cumulative workforce additions by top five IT firms - Tata Consultancy Services (TCS), Infosys , HCLTech, Wipro and Tech Mahindra – shrinking to below 5,000 in the April-June quarter.While overall net additions have been on the decline for the past four years from over 53,000 employees added in FY21, stronger deal momentum amid hopes of clarity on tariff policy in the second half of the year, and the need for specialised skills is making outsourcing firms optimistic about recruitment of freshers.For the full fiscal year that ends in March 2026, TCS and Wipro have continued to maintain fresher hiring targets of up to 40,000 and 12,000, respectively. Neck-to-neck rivals Cognizant – Indian-origin US-headquartered – and homegrown Infosys aim to hire 15,000-20,000 freshers each. Cognizant has over 70% of its employee base in India.This comes on the back of strong deal bookings expected to convert into execution sooner than later. For now, experts are unanimous that most IT services companies are focused on optimising costs, improving utilisation, and recalibrating talent for future-ready roles.Peer companies are not expected to follow suit expansively with TCS' July decision to lay off 2% of its employees – around 12,000 people.However, there are visible fissures of the slowing or deferred business impact.'Over the next couple of quarters, we expect a measured approach rather than a widespread wave of retrenchments. Hiring is concentrated at the entry level, a strategic move to manage costs and invest in future talent. Companies are equipping freshers with new-age skills through robust training programs,' said Aditya Narayan Mishra, MD & CEO of mass recruitment firm CIEL HR.Teamlease's Sharma added that restructuring is 'more visible at mid to senior levels, especially in roles with lower billability, overlap due to M&A, or outdated tech stacks.'Mishra anticipates a slight uptick in hiring activity in H2, particularly in high-demand skill areas like AI/ML, cybersecurity, cloud engineering, and digital consulting.'With many AI pilots underway, companies will begin identifying the real ROI (return on investment) and start hiring talent that can scale viable projects. However, the growth will be selective and skills-led, not volume-driven,' Mishra said.A Randstad Digital 'India Talent Insights Report 2025' report by showed that AI and ML roles alone saw a 39% demand surge in 2024 despite overall IT hiring declining by 7% due to macroeconomic pressures and global uncertainties.This points to a sustained shift that will continue over the next 12–18 months.'Tier-2 cities are gaining momentum, with locations like Chandigarh and Coimbatore leading growth in junior and mid-level IT hiring—driven largely by GCC expansion and distributed workforce models. We expect selective hiring in niche areas, a focus on outcome-based talent, and growing demand for AI-led transformation skills,' the report said.
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