Entry-level hiring in India's technology sector dropped to approximately 15% in 2025. This figure represents a sharp decline from 28% in 2024.

Companies are prioritizing professionals with skills in artificial intelligence, cloud computing, and automation over mass-recruiting graduates. This strategic shift moves the industry away from its traditional headcount-linked revenue model.

Tata Consultancy Services (TCS) has substantially reduced its intake of fresh graduates. Meanwhile, Infosys is creating specialized, higher-paying roles for graduates with AI expertise.

The top five Indian IT firms added only 17 net employees in the first nine months of fiscal 2026. This is a stark contrast to the 18,000 employees added in the prior year. The sector is transitioning toward smaller, more productive teams focused on AI capabilities.