Prioritising value over volume: Indian IT firms zeroing in on hires with AI, ML, and data skills

Bengaluru: Indian IT companies are slowly modifying their hiring strategy to zero in on specific skill-based hires, instead of mass hiring with legacy skills, as is evident from the third quarter results of major firms.

Although IT services companies have adapted well to the AI wave, the new technology has changed the approach of hiring, with companies now keen to onboard candidates with AI, ML, and data analytics skillsets than those with mainly legacy skills, experts said. They also said that IT hiring is going on in recent quarters, though net addition may not look high due to several reasons.

“Slowly, IT hiring is becoming value over volume approach. IT companies are adding headcount. This is mainly for three reasons. Firstly, hiring is happening in the US and Europe (where moving professionals is becoming difficult). Secondly, many companies are doing acquisitions, which is leading to headcount addition. Thirdly, companies are looking for specific skillsets for which they are recruiting people,” Pareekh Jain, an IT outsourcing advisor & founder of Pareekh Consulting told The Hans India.

That is the reason why companies are offering higher salaries to freshers with specific skillsets, which is good news for the industry.

The top five IT firms’ combined headcount fell by more than 2,000 in the third quarter of FY26 owing to sharp reduction in employee count by the TCS. Infosys and Wipro added 5,043 and 6,529 employees respectively during the third quarter, while TCS saw its headcount falling by 11,251 employees in Q3 of FY26.

“Although the numbers show a different picture, Indian IT firms are hiring. We need to also remember that professionals, who started their career in the nineties, are also retiring. This was not the case in earlier years,” Jain said.

Reports suggest that IT companies are offering more than Rs 20 lakh per annum to freshers with specific AI, & data skillsets. Many companies are creating an employee base, who are experts in skills that are in demand now. Meanwhile, hiring in the legacy skillsets has come down.

“For legacy skillsets, hiring is happening on need basis. But companies are looking at more AI-specific skillsets now and paying more. Many positions, which are becoming vacant due to attrition, are not being filled. Bench has been reduced to bare minimum now. That is the reason why companies are paying higher salaries to freshers now,” an HR expert said.