The Indian IT industry experienced a turning point in the June quarter, with several companies reporting net headcount additions. (AI image)
Indian IT sector to see hiring revival: The IT services sector is poised for a significant resurgence in fresher hiring this year, with estimates suggesting a nearly twofold increase in entry-level recruitment compared to the previous fiscal year. Data obtained by ET indicates that the sector is expected to exceed 150,000 fresher hires in FY25.
Experts attribute this positive outlook to the growing demand in business, especially in the banking, financial services, and insurance (BFSI) segment, which represents the largest vertical for most IT companies.
Additionally, substantial large deal wins and global expansion by major IT players contribute to this optimism.
The Indian IT industry experienced a turning point in the June quarter, with several companies reporting net headcount additions after a period of decline.
This increase in fresher hiring comes after a subdued FY24, during which clients reduced their technology spending. IT companies have also been expanding their operations beyond their primary geographies to mitigate risks. Recent months have shown signs of recovery in core regions, especially with interest rate cuts by central banks in Europe and the US.
IT Sector Hiring Outlook
“FY2024 saw the lowest intake of freshers in the IT sector since 2000. However, FY2025 is expected to witness a significant rebound, with a potential 100% year-on-year (YoY) growth, surpassing 150,000 entry-level hires,” said Kapil Joshi, Deputy CEO at Quess IT Staffing. This contrasts with the roughly 60,000 net hires reported by the $250 billion technology services industry in FY24.
Aditya Narayan Mishra, MD & CEO of staffing firm CIEL HR, notes, “Fresher hiring demand is projected to rise by 10-15% in the second half of FY25 compared to the same period last year. This growth is primarily driven by a reduction in bench strength and an optimistic industry outlook for the coming months.” CIEL HR estimates suggest that Indian IT services firms have already hired around 150,000-170,000 freshers in the calendar year 2024.
Mishra further commented, “This reflects a cautious yet strategic hiring approach amid economic uncertainties. Compared to the same period last year, there has been an estimated 10% increase in fresher hiring, signaling a gradual recovery in the sector. Organisations are taking a balanced recruitment approach, aligning fresher intake with project demands while maintaining a prudent outlook on overall growth.”
Also Read | Infosys ‘Power’ programme offering freshers Rs 9 lakh salary; substantially higher than Rs 3-3.5 lakh entry-level fresher pay
Accenture, the global IT leader, reported a significant increase in headcount during the June-August quarter, with 24,000 new hires, the highest in the past ten quarters. The company’s Chair and CEO, Julie Sweet, emphasized that the majority of the hiring is taking place in India, particularly in the technology sector, and includes onboarding new college graduates to refresh their talent pyramid.
A report by Nuvama suggests that most companies expanded their workforce in Q1 FY25 and are now focusing on optimizing their talent pyramid. They are preparing to onboard freshers hired in the previous quarters, and this deployment is expected to contribute to future growth. Notably, Infosys has sent onboarding emails to more than 1,000 engineering graduates who had been waiting for placement for over two years.
In Q1, Infosys and Wipro announced plans to resume campus hiring this fiscal year after a one-year hiatus. TCS, the industry leader, has committed to hiring 40,000 freshers in FY25, while the top four IT players, including HCLTech, have collectively pledged to hire around 82,000 freshers.
Recent reports indicate that these four IT companies signed at least 33 deals in July and August, necessitating the need for talent to execute the projects.
