Revival in Tech Investment Spurs Hiring

India's leading IT services companies, including TCS and Infosys, are setting higher recruitment goals for fresh graduates in fiscal year 2026, buoyed by signs of renewed technology investment. Despite a slowdown in hiring in the current fiscal year, the six largest IT organizations in India aim to hire approximately 82,000 new graduates starting April 2025.

Company-Specific Hiring Plans

Industry leader Tata Consultancy Services (TCS) plans to exceed its typical recruitment numbers, targeting more than 40,000 campus freshers. Infosys, TCS's primary competitor, remains committed to hiring over 15,000 freshers in FY25 and anticipates increasing this figure to exceed 20,000 in the following year. Wipro, despite falling short of its FY25 commitment to hire 10,000 freshers, has announced plans to recruit between 10,000-12,000 new graduates in the upcoming fiscal year.

Market Trends and Future Outlook

The banking, financial services and insurance (BFSI) sector and North American market have shown promising signs of increased discretionary technology spending during the traditionally slow third quarter (Q3), indicating positive growth prospects for IT companies in FY26. According to Infosys managing director and CEO Salil Parekh, recruitment expansion reflects the revival in discretionary spending, though subject to seasonal variations in revenue.

Workforce Adjustments and Productivity Enhancements

The December quarter saw significant workforce reductions, with TCS recording the largest decrease of 5,370 employees, whilst Tech Mahindra and Wipro reduced their staff by 3,785 and 1,157 respectively. Companies maintained that these reductions were seasonal and not indicative of overall demand conditions. Top IT firms have reported a sequential rise in their last twelve-month (LTM) attrition rates, indicating a gradual recovery in demand.