IT recruitment maintains a cautious pace, despite plans to increase entry-level hirings within the tech sector
IT Sector in India Shows Cautious Growth in FY26
The IT sector in India is experiencing a cautious but sustained growth in the fiscal year 2026, with a focus on fresher hiring targets and a strategic shift towards niche digital and AI skills.
Major IT companies like Tata Consultancy Services (TCS) and HCLTech continue to hire freshers in significant numbers. TCS added over 6,000 employees in Q1 FY26, with no reduction in headcount planned despite AI advancements, indicating a steady intake of new talent [1]. HCLTech, while more selective, is focusing on quality with about 15-20% of their campus hires specialized in AI and offering up to four times the standard entry-level salary for niche AI skills [2].
There is a strong and growing demand for specialized skills such as artificial intelligence (AI), digital engineering, and related advanced technologies. Companies are prioritizing hiring agile talent that can evolve alongside rapid AI developments. The AI talent gap is widening, as only 15-20% of the Indian tech workforce currently has AI-related training, prompting firms to invest heavily in specific digital competencies [2].
The IT ecosystem, including startups and global capability centres (GCCs), is showing robust hiring activity. Startups are expected to add about 80,000 new tech jobs in FY26, contributing to overall growth and recovery in employment after recent funding resets [3]. Mid-sized GCCs are also outpacing larger ones in hiring growth, with 10-12% increase in H1 FY26, reflecting a broader push towards expanding middle-tier IT operations with skilled freshers included [4].
Companies are also focusing more on upskilling their existing workforce and hiring fewer freshers compared to 2-3 years ago. The hiring outlook remains cautious, with companies focusing on need-based recruitment rather than large-scale expansions.
HCLTech is calibrating its fresher hiring program based on skills and specialization. Significant work has been done over the last 6-8 months to overhaul and recalibrate HCLTech's entry-level talent plans [5]. Roles in the specialist or elite category offer packages nearly three times higher than the base compensation, and software roles offer upwards of four times the base compensation [6].
Despite the cautious approach, the demand for agile, tech-savvy talent is seeing renewed demand across industries, with a surge in fresher hiring, particularly in AI and cloud. Major IT firms such as TCS, Infosys, and Wipro have set fresher hiring targets of 40,000, 20,000, and 12,000, respectively, for the upcoming fiscal year [7].
However, the IT sector is navigating a delicate balance in FY26, tempering costs while selectively investing in future-ready talent to stay competitive in an increasingly AI-driven economy. The recovery of the job market is gradual and far from reaching pre-pandemic levels [8]. Nearly 60% of IT firms have indicated moderate to cautious hiring plans for FY26, according to a recent study [9].
In conclusion, the IT sector in India is adapting to the changing landscape by focusing on fresher hiring, niche digital skills, and upskilling existing employees. The sector is aiming to maintain workforce growth while upgrading the skill profile of new entrants to stay competitive in the AI-driven economy.
[1] TCS adds over 6,000 employees in Q1 FY26, no reduction in headcount planned [2] HCLTech focuses on quality with 15-20% of campus hires specialized in AI [3] Startups to add 80,000 new tech jobs in FY26 [4] Mid-sized GCCs outpace larger ones in hiring growth [5] HCLTech recalibrates entry-level talent plans [6] Roles in specialist or elite category offer packages nearly three times higher than base compensation [7] Major IT firms set fresher hiring targets for FY26 [8] IT sector navigating delicate balance in FY26 [9] Nearly 60% of IT firms indicate moderate to cautious hiring plans for FY26
- The IT sector in India is showing a strategic shift towards niche digital and AI skills, with major companies like Tata Consultancy Services (TCS) and HCLTech increasing their focus on fresher hiring targets.
- In the education-and-self-development sector, there is a growing demand for specialized skills such as artificial intelligence (AI) and digital engineering, as companies prioritize hiring agile talent that can evolve alongside rapid AI developments.
- To stay competitive in the AI-driven economy, the IT sector is adapting by focusing on fresher hiring, upskilling existing employees, and investing in specific digital competencies.
- The business domain of finance is also observing a renewed demand for agile, tech-savvy talent, with a surge in fresher hiring, particularly in AI and cloud, as major IT firms set fresher hiring targets for the upcoming fiscal year.
