How India's IT Hiring Engine is Holding Up

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Hiring projections by top-tier Indian information technology (IT) services firms such as Tata Consultancy Services Ltd (TCS), Infosys Ltd, and Wipro Ltd for the current fiscal year point to a cautious rebound following a period of subdued recruitments amid global economic uncertainties and reduced client spending.

While economic clouds and lower client spending linger globally, hiring appears to be on an even keel for now. TCS announced its intent to hire about 42,000 trainees in FY26, Infosys unveiled plans to recruit about 20,000 freshers, though Wipro didn’t share its hiring plans.

Fiscal years 2021–22 (FY22) and 2022–23 (FY23) were banner years for Indian information technology services. The pandemic triggered a global rush toward digital transformation, pushing demand for skilled tech talent. Companies such as TCS, Infosys, Wipro, HCL Technologies (HCL Tech), and Tech Mahindra launched aggressive hiring drives to meet surging international demand.

In FY22-23, Infosys added nearly 30,000 employees, followed by TCS with more than 22,000, and HCLTech with 17,000 new hires, data compiled by TeamLease Digital showed. Wipro and Tech Mahindra also posted strong gains. That was a period marked by bold bets on a digital-first future.

By FY23–24, however, sentiment soured. Economic uncertainty in key markets such as the US and Europe led to reduced tech spending and delayed projects. Layoffs and hiring freezes became common.

Infosys and Wipro reduced headcount by 25,994 and 24,516, respectively, in FY23- 24. TCS also cut jobs, though less drastically, reducing its workforce by 13,249. Tech Mahindra eliminated nearly 7,000 roles, while HCL Tech was the lone outlier, posting a small increase in staff.

Of late, there are signs of a cautious rebound. TCS and Infosys hired about 6,400 employees (net) in FY25, while Tech Mahindra is expected to have hired about 7,000. Wipro’s return is modest, with around 700 additions, while HCL Tech saw a slight decline in staff numbers.

“Indian IT is navigating a transitional phase. After the aggressive hiring of FY22–23 and the painful corrections of FY23–24, early signs of cautious recovery in FY24–25 point to a more strategic, selective approach to talent acquisition,” TeamLease Digital chief executive officer Neeti Sharma said in an interview with MIT Sloan Management Review India.

A Broader Look

Over the last five years, hiring trends have shown both volatility and resilience. Data from the foundit Insights Tracker showed that hiring rose just 3% in 2020 as companies treaded carefully amid early pandemic uncertainty.

Then came a hiring surge in 2021—up 20%—as firms scrambled to digitize operations. But the momentum stalled in 2022, with hiring flatlining at 0% as macroeconomic cracks widened.

The biggest shock came in 2023, when global layoffs and tighter budgets drove a 14% drop in IT hiring. Yet, in classic fashion, the sector rebounded in 2024 with a 16% hiring growth, driven by demand for skills in artificial intelligence (AI), cybersecurity, and cloud migration.

And the good news? The outlook for 2025 remains optimistic, with a projected 15% hiring increase, hinting at a steadier, though measured, recovery.

Shifts Across the Broader Talent Landscape

These hiring shifts weren’t limited to top-tier IT firms. The trend echoed across startups, multinational corporations (MNCs), and mid-sized enterprises.

Startups, buoyed by abundant funding in 2021, grew their hiring share from 18% to 22%. MNCs and Global Capability Centers (GCCs)—offshore units handling complex work for global firms—remained the mainstay of IT employment, though their share dipped slightly. Small and medium enterprises (SMEs) stayed consistent, gradually adopting digital technologies.

But the landscape shifted again in 2022 with a so-called “funding winter.” Startup hiring dropped to 16%, while MNCs and GCCs expanded their share to 51%. SMEs inched up to 33%, continuing their steady digital push.

By 2023, the balance began to return: startups showed signs of recovery, MNCs stabilized, and SMEs held firm.

Looking Ahead

If the past half-decade has proved anything, it’s that India’s IT sector is highly adaptive. Hiring strategies are evolving—from rapid scaling to a more deliberate focus on future-ready skills.

For job seekers and companies alike, the message is clear: success in this new era will belong to those who can pivot fast, embrace change, and stay in sync with a digital-first, AI-driven world.