Indian tech talent should upskill to cash in on the AI wave
Hiring in Indian IT industry is going through a rough patch. Global IT services industry is in a state of flux. Rapid adoption of artificial intelligence (AI)-powered platforms and services is making many job roles redundant through automation. This is one of the reasons that global technology giants like Meta, Google, Microsoft, Oracle, and the likes have been laying off staffers across geographies, including in the US and India. As the world goes through an AI wave, uncertainty created through Trump tariffs is worsening the matters.
While global growth outlook has been downgraded owing to the US tariffs, enterprises are unwilling to gamble on technology spending. These factors are playing out intensely in the global technology industry and India is no exception. As the world’s largest technology talent base, India has been impacted negatively since last year. As a result, hiring has been tepid in recent quarters. Many IT firms like TCS have resorted to cost optimisation moves by laying off staffers. In the first quarter of current financial year, employee addition numbers have dropped drastically. The country’s top six IT services companies- TCS, Infosys, HCLTech, Wipro, Tech Mahindra and LTIMindtree- added just 3,847 positions during Q1 of the current financial year as compared to 13,935 people added in the previous quarter.
Many HR experts opine that the July-September period (Q2FY26) may not be very different from the first quarter. Importantly, the hopes of recovery are slowly fading as tariff issues are yet to be settled. If such uncertainty continues, FY26 may see continuing trend of low hiring.
This hiring trend has been especially harsh on freshers and junior employees. Usually, top and mid-tier Indian IT firms hire in bulk numbers from engineering college campuses every year. As AI adoption automate several entry-level jobs, placement prospects are going down. In a low demand environment, companies are unwilling to maintain bench (reserved employees).
On that count this year may see low placement opportunities for fresh engineering graduates. Similarly, as job openings come down, junior employees (staffers with 2-3 years of experience) are forced to stick to their jobs. Usually, attrition in the junior employees’ level has been the highest in the Indian IT industry. While hiring prospects have come down in the last one and half years, all is not lost. There are demands for highly skilled professionals in certain domains. For instance, demand for technology professionals with skillsets in cloud, data analytics, cybersecurity, AI, ML and related domains have been robust. Hence, technology professionals should upskill themselves fast as the AI era looms.
Moreover, GCC (Global Capability Centre) ecosystem remains a bright spot in the hiring space. Though tariffs have impacted hiring sentiments of American GCCs here, overall hiring continues to be strong. India with its technology talent base is providing a sound opportunity for driving innovation for global companies. So, the hiring trend in GCCs may not be impacted badly in the immediate future. In this perspective, employees of the IT sector will be well-placed if they upskill themselves fast as per the global trend.
The world is witnessing a wave of protectionist moves coming from various economies with the US leading the race. Technology talent should, therefore, be ready to build from India, for the world. Despite all the negativities as regards Indo-US relations, India remains a key talent hub for the global technology industry. This is not easily replaceable. So, job prospects are likely to remain sound despite near-term hiccups.