IT sector employment: Firms eye cautious, fresher-focused recruitment; TCS, Infosys and more set targets for FY26

Software services companies are set to adopt a cautious yet strategic approach to hiring in the second half of FY25, with recruitment specialists projecting 3–5 per cent growth compared to the first half. The focus will be on skilled freshers and junior-level positions, given lower costs and higher learning potential.

“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 Teamlease Digital, as quoted by Economic Times.

The top five IT firms, TCS , Infosys , HCLTech, Wipro and Tech Mahindra, added fewer than 5,000 employees in the April-June quarter, amid trade and macroeconomic uncertainties.

Although net additions have fallen over the years from over 53,000 in FY21, outsourcing firms remain optimistic on fresher hiring, citing stronger deal momentum, expected tariff policy clarity later this year, and rising demand for specialised skills. TCS and Wipro have reaffirmed their FY26 fresher hiring targets of 40,000 and 12,000 respectively, while Infosys and Cognizant are aiming to add 15,000–20,000 freshers each. Cognizant continues to maintain over 70 per cent of its workforce in India, according to ET.

Companies are prioritising cost optimisation and utilisation improvements, with restructuring largely impacting mid-to-senior level roles tied to reduced billability, M&A overlaps or outdated technology stacks, according to Sharma.

“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 CIEL HR.

Mishra added that demand will be strongest in 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.”

Randstad Digital’s India Talent Insights Report 2025 noted that AI and ML positions saw 39 per cent demand growth in 2024, even as overall IT recruitment fell 7 per cent due to global and economic pressures. Tier-2 cities such as Chandigarh and Coimbatore are also emerging as junior and mid-level hiring hubs, driven by GCC expansion and distributed workforce models.