India’s top IT companies have slowed hiring even as they marginally increased their headcount in the March quarter, reflecting the industry’s cautious approach amid global uncertainty. Tata Consultancy Services (TCS), Infosys, and Wipro collectively added 1,438 employees in Q4 FY25, reversing a reduction of 936 in the previous quarter. TCS led the additions with 625 new hires, followed by Wipro with 614 and Infosys with 199.
Hiring momentum slows
The numbers mark a shift from the earlier aggressive hiring trends. The top five Indian IT firms had reduced their workforce by 2,587 in the December quarter, contrasting with a sharp addition of 15,033 in the September quarter. For the full year FY25, the net headcount addition across TCS, Infosys, and Wipro stood at 13,503, compared to a reduction of 64,000 in FY24.
This hiring moderation comes as the Indian tech sector faces challenges from macroeconomic volatility, tariff-related trade tensions, and rising reliance on automation and artificial intelligence. Indian software exporters are adopting a wait-and-watch stance, especially with the U.S. tariff announcements and the broader impact on clients in North America and Europe.
Firms turn cautious
“We’ll continue to hire from campuses, and it will be similar to last year’s numbers. With respect to net additions, it depends on the overall business environment and what we eventually hire in the market,” TCS Executive Vice President and CHRO Milind Lakkad told TOI's Shilpa Phadnis.
Wipro CHRO Saurabh Govil said the company is exercising caution after past missteps. “We burnt our fingers three years back. So, we are very conscious that we do it the right way.”
Demand for tech roles drops
The demand for tech talent dropped by nearly 20% in Q4 FY25 compared to the previous quarter, according to staffing firms. Active hiring demand in IT services declined from 80,000 in February to 55,000 in March, Xpheno data showed. Some companies are delaying hiring decisions and focusing on replacing only critical roles.
Phil Fersht, CEO of U.S.-based HfS Research, noted, “This hiring metric is very relevant to the changing times. The services firms are looking to incorporate current staff plus AI as opposed to the traditional model of hiring freshers and new staff to bolster growth.”
Attrition may no longer lead to backfilling
With attrition rates averaging 12-16% in IT Services and Global Capability Centres (GCCs), industry watchers say firms may stop backfilling exiting employees. Kamal Karanth, cofounder of Xpheno, told ET, “There is a likelihood of layoffs in the Indian tech industry, especially in the two largest cohorts of IT Services and GCCs, which employ almost 70% of the Indian tech workforce.”
Executives flag rising uncertainty since March
TCS CEO K Krithivasan indicated that market dynamics shifted late in the March quarter. “Until February, we were quite positive and optimistic about the quarter, we started seeing some uncertainty creeping in in March, resulting in some project delays, some decision-making delays.”
Wipro CEO Srini Pallia echoed similar concerns, saying the company is monitoring the situation closely and does not want to onboard people without assured deployment.
India’s tech industry hired around 1.26 lakh employees in FY25, taking the total workforce to 5.8 million, up from 5.6 million the previous year, according to Nasscom. However, much of the addition came from GCCs, as large IT firms continued to see net headcount declines.
Protectionist policies may slow hiring recovery
Experts believe that protectionist policies and inflation concerns in the U.S. may further delay hiring recovery. Aditya Narayan Mishra, CEO of Ciel HR, said there was a 10% decline in bulk hiring demand in Q4 FY25 compared to the same period last year. “Companies are taking a wait-and-watch approach,” he said.
Nitin Bhatt, technology sector leader at EY India, added, “(This) could result in a slowdown in discretionary spends and prove to be a headwind for growth. IT players have started factoring this in as they plan their hiring for FY26.”
Startups also pull back on hiring
The hiring pause has extended to Indian software product startups as well. Data from Xpheno showed a drop in hiring demand from 35,000 to 25,000 since late March. Overall, the tech sector’s contribution to active job demand has fallen from 45% to 40%.
“Companies are finding the right balance between attrition and performance-led exits on one side, and right-sizing lateral infusion, where required, on the other,” said EY’s Bhatt. Utilisation levels in leading IT companies are currently in the range of 83-85%, reflecting efforts to improve productivity while limiting fresh hiring.
Hiring momentum slows
The numbers mark a shift from the earlier aggressive hiring trends. The top five Indian IT firms had reduced their workforce by 2,587 in the December quarter, contrasting with a sharp addition of 15,033 in the September quarter. For the full year FY25, the net headcount addition across TCS, Infosys, and Wipro stood at 13,503, compared to a reduction of 64,000 in FY24.
This hiring moderation comes as the Indian tech sector faces challenges from macroeconomic volatility, tariff-related trade tensions, and rising reliance on automation and artificial intelligence. Indian software exporters are adopting a wait-and-watch stance, especially with the U.S. tariff announcements and the broader impact on clients in North America and Europe.
Firms turn cautious
“We’ll continue to hire from campuses, and it will be similar to last year’s numbers. With respect to net additions, it depends on the overall business environment and what we eventually hire in the market,” TCS Executive Vice President and CHRO Milind Lakkad told TOI's Shilpa Phadnis.
Wipro CHRO Saurabh Govil said the company is exercising caution after past missteps. “We burnt our fingers three years back. So, we are very conscious that we do it the right way.”
Demand for tech roles drops
The demand for tech talent dropped by nearly 20% in Q4 FY25 compared to the previous quarter, according to staffing firms. Active hiring demand in IT services declined from 80,000 in February to 55,000 in March, Xpheno data showed. Some companies are delaying hiring decisions and focusing on replacing only critical roles.
Phil Fersht, CEO of U.S.-based HfS Research, noted, “This hiring metric is very relevant to the changing times. The services firms are looking to incorporate current staff plus AI as opposed to the traditional model of hiring freshers and new staff to bolster growth.”
Attrition may no longer lead to backfilling
With attrition rates averaging 12-16% in IT Services and Global Capability Centres (GCCs), industry watchers say firms may stop backfilling exiting employees. Kamal Karanth, cofounder of Xpheno, told ET, “There is a likelihood of layoffs in the Indian tech industry, especially in the two largest cohorts of IT Services and GCCs, which employ almost 70% of the Indian tech workforce.”
Executives flag rising uncertainty since March
TCS CEO K Krithivasan indicated that market dynamics shifted late in the March quarter. “Until February, we were quite positive and optimistic about the quarter, we started seeing some uncertainty creeping in in March, resulting in some project delays, some decision-making delays.”
Wipro CEO Srini Pallia echoed similar concerns, saying the company is monitoring the situation closely and does not want to onboard people without assured deployment.
India’s tech industry hired around 1.26 lakh employees in FY25, taking the total workforce to 5.8 million, up from 5.6 million the previous year, according to Nasscom. However, much of the addition came from GCCs, as large IT firms continued to see net headcount declines.
Protectionist policies may slow hiring recovery
Experts believe that protectionist policies and inflation concerns in the U.S. may further delay hiring recovery. Aditya Narayan Mishra, CEO of Ciel HR, said there was a 10% decline in bulk hiring demand in Q4 FY25 compared to the same period last year. “Companies are taking a wait-and-watch approach,” he said.
Nitin Bhatt, technology sector leader at EY India, added, “(This) could result in a slowdown in discretionary spends and prove to be a headwind for growth. IT players have started factoring this in as they plan their hiring for FY26.”
Startups also pull back on hiring
The hiring pause has extended to Indian software product startups as well. Data from Xpheno showed a drop in hiring demand from 35,000 to 25,000 since late March. Overall, the tech sector’s contribution to active job demand has fallen from 45% to 40%.
“Companies are finding the right balance between attrition and performance-led exits on one side, and right-sizing lateral infusion, where required, on the other,” said EY’s Bhatt. Utilisation levels in leading IT companies are currently in the range of 83-85%, reflecting efforts to improve productivity while limiting fresh hiring.
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