India’s information technology sector is facing a slowdown in hiring as global uncertainties and rapid adoption of artificial intelligence reshape the industry. The integration of AI-powered platforms and services is automating many roles, leading global firms such as Meta, Google, Microsoft and Oracle to reduce headcount across geographies, including India and the United States. The uncertainty created by tariff issues has further added pressure on the technology industry.
With global growth projections downgraded, enterprises are cautious about technology spending. India, home to the world’s largest pool of technology professionals, has seen the impact clearly over the past year. Hiring has remained weak, and many firms including TCS have resorted to cost-cutting measures. In the first quarter of the current financial year, the top six IT companies TCS, Infosys, HCLTech, Wipro, Tech Mahindra and LTIMindtree together added just 3,847 employees, a steep fall compared to 13,935 additions in the previous quarter.
Industry experts suggest that the July to September period may mirror this weak trend, with little sign of quick recovery as tariff concerns remain unresolved. This has been particularly harsh for fresh graduates and junior employees. Traditionally, Indian IT firms have recruited large numbers from engineering campuses, but as AI automates entry-level jobs, opportunities are shrinking. With demand slowing, firms are also unwilling to maintain a large bench of idle staff.
Fresh engineering graduates are likely to face limited placements this year, while junior employees with two to three years of experience are holding on to their current roles due to fewer openings. Attrition, usually high in this segment, has dropped significantly. However, there is still strong demand for professionals skilled in emerging domains such as cloud, data analytics, cybersecurity, artificial intelligence and machine learning. Experts highlight that upskilling is now essential for long-term growth.
On a positive note, the Global Capability Centre ecosystem remains resilient. Although tariffs have dampened hiring sentiment among some US-based GCCs, India continues to be an attractive hub for innovation, and overall hiring in this space remains stable.
Despite global protectionist trends, India’s technology talent pool continues to play a vital role in the worldwide industry. While short-term challenges persist, experts believe that with the right skills, Indian IT professionals will continue to find strong opportunities in the AI-driven future.
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