Mumbai, India — India’s top five IT companies have added just 17 net employees in the first nine months of the 2025-26 financial year. This stark contrast to the 17,764 net additions during the same period last year highlights a significant shift in hiring practices across the sector. As these firms become more cautious, the implications for job seekers, especially fresh graduates, are profound.

The slowdown in hiring reflects tighter demand, pressure on discretionary spending, and the increasing adoption of AI-led delivery models that reduce the need for additional staff. According to a report, Tata Consultancy Services (TCS) was the largest contributor to this decline, shedding 25,816 employees in the same period. This trend raises concerns for students and recent graduates entering the job market, as opportunities dwindle in a sector once known for its robust hiring.

Infosys, Wipro, HCLTech, and Tech Mahindra added some employees, but overall, the numbers are disheartening. The combined headcount of the five firms fell by 2,174 employees in the December quarter alone, with TCS experiencing a sharp reduction of 11,151 employees. This situation is indicative of a broader trend where firms are prioritizing efficiency over expansion.

Why TCS’s Hiring Decline Matters

This hiring freeze at TCS and other major IT firms signals a critical change in the industry. Traditionally, IT companies have relied on a pyramid growth model, where increasing headcount directly correlated with revenue growth. However, industry experts suggest that this model is becoming obsolete.

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Phil Fersht, CEO of HfS Research, points out that the industry is shifting away from this traditional growth model, driven by multiple factors. Clients are now focusing on maximizing the use of existing assets and improving productivity rather than simply expanding their workforce. This shift is evident as AI and automation begin to play a more significant role in service delivery.

Traditionally, IT companies have relied on a pyramid growth model, where increasing headcount directly correlated with revenue growth.

The implications for job seekers are profound. As firms like TCS move towards AI-driven efficiency, the demand for junior and mid-level positions is decreasing. This decoupling of revenue and headcount could mean fewer entry-level opportunities for fresh graduates looking to break into the IT sector.

Moreover, the cautious approach to campus hiring signals a challenging environment for new graduates. TCS has refrained from announcing its campus hiring numbers this year, which may indicate a more cautious stance towards hiring fresh talent.

Career Implications for Job Seekers in IT

The current hiring landscape presents challenges for various groups of job seekers. For entry-level candidates, the slowdown in hiring means increased competition for fewer positions. Graduates from engineering colleges and IT institutes may find it difficult to secure roles in such a constrained market.

Mid-career professionals may also face challenges as companies focus on consolidating roles and improving productivity rather than expanding their teams. This trend could lead to a stagnation in career progression for many, as opportunities for advancement become limited.

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For career switchers, the landscape is equally daunting. Those looking to transition into IT from other sectors may find it difficult to gain traction, as firms prioritize candidates with specific skills and experience over generalists. Upskilling and gaining relevant certifications may become crucial for those looking to pivot into the IT sector.

What You Can Do to Navigate This Shift

• Upskill Yourself: Focus on acquiring skills relevant to AI and automation. Online platforms like Coursera and Udacity offer courses that can enhance your employability.
• Network Actively: Connect with professionals in the industry through platforms like LinkedIn. Building relationships can help you learn about hidden job opportunities.
• Stay Informed: Keep up with industry trends and company updates. Understanding the direction of firms like TCS can help you tailor your job search effectively.

However, some experts caution against viewing this trend as a permanent shift. Ray Wang, CEO of Constellation Research, emphasizes that while AI is reshaping the industry, it may not completely eliminate the need for human talent. Companies may still require skilled workers to manage and oversee AI systems, suggesting that the demand for IT professionals may evolve rather than disappear.

Mid-career professionals may also face challenges as companies focus on consolidating roles and improving productivity rather than expanding their teams.

The Future of Hiring in India’s IT Sector

As we look ahead, the future of hiring in India’s IT sector remains uncertain. The current trend towards reduced headcount growth may continue as firms adapt to new technologies and changing client expectations. Companies are likely to prioritize efficiency, skills, and role consolidation over traditional growth models.

For job seekers, this means that adaptability will be crucial. Embracing lifelong learning and staying ahead of industry trends will be essential for securing employment in this evolving landscape. The ability to pivot and acquire new skills will set candidates apart in a competitive job market.

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Will the shift towards AI-driven efficiency lead to a permanent reduction in job opportunities in the IT sector, or will it create new roles that we have yet to envision? Only time will tell, but staying proactive in your career development will be key to navigating these changes successfully.