Fresher hiring targets set, but overall IT recruitment stays restrained

India’s IT hiring landscape for FY26 remains restrained, as most companies continue to prioritise cost efficiency and internal upskilling over large-scale recruitment. While full-time hiring is subdued, selective demand for niche digital skills and a renewed focus on fresher hiring, particularly in AI and cloud, are driving pockets of growth.

For the upcoming fiscal year, major IT firms such as TCS, Infosys, and Wipro have set fresher hiring targets of 40,000, 20,000, and 12,000, respectively.

However, most top IT companies are still cautious with hiring, aiming to optimise costs, which is leading to a slowdown in 2026 compared to 2025.

Aditya Narayan Mishra, MD and CEO of CIEL HR, said that the hiring outlook remains cautious, with companies focusing on need-based recruitment rather than large-scale expansions. As per its recent study, nearly 60 per cent of IT firms have indicated moderate to cautious hiring plans for FY26.

Although the recovery is gradual, it remains far from reaching pre-pandemic levels, noted Rajesh Bharatiya, CEO and Founder of Peoplefy. Companies are focusing more on upskilling their existing workforce and hiring fewer freshers compared to 2–3 years ago.

“While hiring is still not back, we see an increase in demand in Q2. But it is not the same volume as in the past. Additionally, the hiring skill sets are completely niche in nature, with multiple combinations of skills,” said

Sanketh Chengappa KG, Director and Business Head – Professional Staffing - Adecco India. As technology evolves at a faster pace, companies are shifting their focus to skilling freshers in AI and cloud to meet future business needs.

“With rapid digital transformation, demand for agile, tech-savvy talent is seeing renewed demand across industries. Fresher hiring surged 46 per cent y-o-y, according to our 2025 India at Work Q1 report, with over 66 lakh applications, driven by rising talent from Tier II and Tier III cities like Warangal and Rajkot. Hiring freshers is a strategic move to future-proof organisations. They bring curiosity, innovation, and adaptability, all key assets for any company,” Nirmit Parikh, CEO at Apna.co, added.

On the other hand, compensation remains tight. Mishra said that hikes have been moderate to low due to macroeconomic tensions and companies’ continued focus on cost optimisation and the maximum utilisation of their resources.

Salary bands have not opened, with any upward movement limited to select cases, typically for highly skilled professionals with expertise across multiple domains.

During the HCLTech Q1FY26 earnings conference call, Chief People Officer Ramachandran Sundararajan shared, “We are calibrating our fresher hiring program. Fresher intake is no longer just based on numbers, but based on skills and specialisation.”

The company is attracting talent by restructuring its compensation plans for freshers. For the regular cadre in India, the base compensation stands at ₹4.25 lakh. Meanwhile, roles in the specialist or elite category offer packages nearly three times higher than this base, and software roles offer upwards of four times the base compensation.

“Significant work has happened over the last 6- 8 months to overhaul and recalibrate our entry-level talent plans,” he said.

As FY26 unfolds, India’s IT sector appears to be navigating a delicate balance — tempering costs while selectively investing in future-ready talent to stay competitive in an increasingly AI-driven economy.

Published on July 25, 2025

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