Hiring stall trends emerged across India’s largest IT services firms after data showed they added only 17 employees during the first nine months of FY26. The slowdown, reported on January 20, 2026, reflects weaker client demand, lower tech spending, and wider use of AI-led delivery models.
What changed in IT hiring
Net hiring across Tata Consultancy Services, Infosys, Wipro, HCLTech and Tech Mahindra has nearly stopped. Together, the five firms added just 17 employees in the April–December FY26 period.
By comparison, the same companies added 17,764 employees during the corresponding period last year, according to data reported by The Economic Times. The sharp shift marks a clear hiring stall across the sector.
Context behind the hiring stall
India’s IT services firms have long absorbed large numbers of engineering graduates each year. That model has shifted as clients reduced discretionary technology spending and delayed new projects.
At the same time, companies expanded AI-led delivery systems. These systems reduced the need for large project teams, especially in routine service roles. As a result, headcount growth slowed across most firms.
Impact on workers and companies
The hiring stall has affected both fresh graduates and experienced professionals. Campus hiring has slowed, and onboarding timelines have lengthened as companies reassess workforce needs.
Tata Consultancy Services contributed most to the net decline. The company reduced its workforce by 25,816 employees during the nine-month period as part of a plan to cut about 2% of headcount. The Times of India reported that over 12,000 exits came from mid- and senior-management levels.
Supporting data and industry signals
The trend deepened during the December quarter. The combined workforce of the five firms fell by 2,174 employees during that period. Infosys added 5,043 staff, while Wipro added 6,529, but TCS shed 11,151 employees, offsetting those gains.
Some marginal additions were linked to mergers and acquisitions. Excluding those effects, several firms would have posted flat or negative numbers, reinforcing the hiring stall narrative.
How the market is adjusting
While large IT firms remain cautious, broader tech hiring shows mixed signals. Workforce solutions provider Adecco India projected 12–15% growth in overall tech hiring in 2026, including contract and temporary roles, according to NDTV Profit.
Adecco said non-IT sectors such as BFSI, healthcare, manufacturing and logistics now drive about 38% of tech hiring. Demand is shifting toward AI engineering, cloud transformation, cybersecurity and data platforms as companies scale deployments.
