Indian IT giants resume hiring after two-year slowdown
NEW DELHI, INDIA — For the first time in two years, India’s top four IT companies — Tata Consultancy Services (TCS), Cognizant, Infosys, and Wipro — reported positive net employee hiring in the September quarter.
This signals a significant shift for the sector, which had been experiencing headcount declines for several consecutive quarters. The resurgence in hiring is primarily driven by a return to campus recruitment and an increase in project signings.
TCS, Cognizant, and Infosys have been particularly active in campus hiring, with onboarding of fresh graduates gaining momentum after prolonged delays. An official from a leading engineering college confirmed that major IT recruiters are back on campuses, indicating a recovery in hiring practices across the sector.
Driving factors behind recruitment surge
A key factor behind this hiring surge is the high employee utilization rates within these companies. According to industry sources, utilization has exceeded 85%, leaving little room for further increases. This has prompted firms to ramp up recruitment efforts to meet growing project demands.
TCS Chief HR Officer Milind Lakkad echoed this sentiment, stating: “Our workforce at the end of the second quarter was 612,724. We added a net 5,726 associates this quarter after adding a similar number last quarter also. We remain on track for freshers on boarding as planned for the year and have also commenced the process for recruiting freshers through the National Qualifier Test for FY ‘26.”
Infosys and Cognizant lead net additions
Infosys reported net additions of approximately 2,500 employees in Q2, marking a return to positive sequential growth after six quarters of decline.
Jayesh Sanghrajka, Infosys’s Chief Financial Officer, noted that the company is on track to onboard 15,000 to 20,000 freshers by the end of FY25.
Cognizant also contributed to the sector’s net hiring boost but did not disclose specific figures for its headcount increase.
Cautious optimism despite uncertain demand environment
Despite these positive hiring trends, experts caution against interpreting this as a sign of sustained demand growth.
Yugal Joshi, Partner at Everest Group, pointed out that while companies are fulfilling their commitments to graduates, the overall demand environment remains uncertain.
Balanced approach to workforce expansion
MS Prasadh of Xpheno Private Limited emphasized that while companies are increasing their workforce, they are doing so cautiously to protect cost-to-revenue ratios.
“Enterprises are not rushing to hire in hordes,” he said. “The outlook is for a balanced positive movement in capacity creation.”
With average attrition rates stabilizing around 13%, Indian IT firms appear poised for steady growth as they navigate an evolving demand landscape.
