The Indian IT services sector is poised for a remarkable rebound in fresher hiring in the fiscal year 2025, with projections indicating a nearly 100% increase in entry-level hires compared to the previous fiscal year.
This optimistic outlook is largely driven by heightened demand in various business sectors, particularly in banking, financial services, and insurance (BFSI)—the largest vertical for most IT firms.
Experts believe that this demand surge, combined with strong large-deal wins and global expansion by IT giants, will propel fresher hiring beyond 150,000 in FY25.
Factors Driving Demand
Data sourced from ET indicates that Indian IT services firms have already hired between 150,000 and 170,000 freshers in the calendar year 2024 alone. The increasing business demand is reflected in the impressive growth of key players.
For instance, Accenture, the world’s largest IT services company, recently announced a headcount increase of 24,000 in Q4 (June-August), marking the highest rise in the last ten quarters.
Julie Sweet, Chair and CEO of Accenture, emphasized that much of this hiring is occurring in India, focusing on technology roles and integrating new college graduates into their workforce.
Positive Hiring Trends Across Major Players
The September quarter of 2024 marked a significant turning point for the Indian IT sector, with several companies reporting net headcount additions after multiple quarters of decline.
In Q2 FY25, Tata Consultancy Services (TCS) added 5,726 employees, reflecting a consistent hiring trend and a positive outlook for future projects, particularly in cloud, AI, and digital transformation services.
Infosys showed a net addition of 2,456 employees in Q2 FY25, signaling stable growth in its workforce in line with its strategic focus on expanding digital and AI capabilities.
Wipro experienced a marginal addition of 978 employees, indicating stable growth in its workforce as well.
In contrast, HCLTech experienced a drop of 780 employees in Q2 FY25, reflecting a more cautious approach, likely influenced by realignment or operational efficiency measures.
Meanwhile, Tech Mahindra showcased significant momentum, adding 6,653 employees, driven by strong demand in the telecommunications, cloud, and AI sectors.
LTIMindtree also marked steady growth by adding 2,504 employees, indicating positive traction in its business areas, especially with an increasing focus on digital solutions.
Optimizing Workforce and Onboarding Initiatives
According to a report by Nuvama, most companies in the sector expanded their workforce during Q2 FY25, prioritizing pyramid optimization and the onboarding of fresh talent. This shift in strategy is expected to contribute significantly to future growth.
Notably, Infosys, the second-largest outsourcing firm in India, has begun sending onboarding emails to over 1,000 engineering graduates who have been awaiting placement for more than two years.
This initiative highlights ongoing efforts to streamline talent acquisition and integration.
Campus Hiring Resumes
In a notable trend, both Infosys and cross-city rival Wipro announced plans to resume campus hiring this fiscal year after a one-year hiatus. This return to campus recruitment signals renewed confidence in the market and a commitment to bringing fresh talent into the industry.
Moreover, Tata Consultancy Services (TCS) has committed to hiring 40,000 freshers in FY25. The top four IT players, including HCLTech, collectively plan to intake around 82,000 fresh graduates.
Project Demands and Future Prospects
The renewed hiring plans of these leading IT companies are further backed by their recent successes in securing contracts.
In July and August alone, the top four firms signed at least 33 deals, necessitating the recruitment of new talent to execute these projects.
As IT services sector gears up for this influx of new hires, the focus on innovation, adaptability, and enhanced service delivery is set to shape the future landscape of the industry.
With strong demand and strategic hiring initiatives, the IT sector is on track for a robust recovery, paving the way for growth and opportunity for fresh talent in FY25.
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