India’s top IT services firms are adopting a cautious yet targeted hiring strategy for FY26, with a clear emphasis on fresher recruitment and skill-based onboarding.
Companies such as Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Tech Mahindra, and Cognizant are recalibrating their workforce plans in response to global economic pressures, muted client spending, and evolving technology demands.
Recruitment specialists project a modest 3–5% hiring growth in the second half of FY25, driven primarily by demand for junior-level talent and specialized roles in emerging technologies.
Fresher Hiring Targets Set for FY26
Despite subdued net additions in recent quarters—fewer than 5,000 employees were added by the top five IT firms during April–June 2025—companies remain optimistic about fresher hiring.
TCS has reaffirmed its target to onboard 40,000 freshers in FY26, while Wipro plans to hire 12,000.
Infosys and Cognizant are each aiming to recruit between 15,000 and 20,000 fresh graduates.
Cognizant, which maintains over 70% of its workforce in India, continues to invest heavily in entry-level talent, citing strong deal momentum and anticipated policy clarity later in the year.
Entry-Level Focus Driven by Cost and Capability
The shift toward fresher-focused hiring is largely strategic.
Entry-level employees offer lower cost-to-company ratios and greater adaptability to new-age skills.
Companies are equipping freshers with robust training programs in areas such as artificial intelligence (AI), machine learning (ML), cloud engineering, cybersecurity, and digital consulting.
“Hiring is concentrated at the entry level, a strategic move to manage costs and invest in future talent,” said Aditya Narayan Mishra, MD & CEO of CIEL HR.
He added that companies are identifying real return on investment (ROI) from AI pilots and are now hiring talent capable of scaling viable projects.
Lateral Hiring Remains Selective
Companies will grow fresher hiring steadily, while they will base lateral hiring on specific project requirements.
Mid-to-senior level roles are facing restructuring, especially those impacted by reduced billability, mergers and acquisitions, or outdated technology stacks.
Neeti Sharma, CEO of Teamlease Digital, noted that hiring may remain muted unless there is a clear uptick in client spending.
“Overall, H2 may see 3–5% hiring growth compared to H1, driven largely by demand for AI, cloud, and platform roles,” she said.
Tier-2 Cities Emerge as Talent Hubs
As part of distributed workforce models and global capability center (GCC) expansion, Tier-2 cities such as Chandigarh and Coimbatore are emerging as key hiring hubs.
These locations offer access to cost-effective talent pools and support companies’ efforts to decentralize operations.
Randstad Digital’s India Talent Insights Report 2025 highlighted a 39% surge in demand for AI and ML roles in 2024, even as overall IT recruitment declined by 7% due to macroeconomic headwinds.
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