Hiring at India’s largest IT services companies has slowed to an unprecedented crawl, highlighting the depth of the downturn facing the sector. According to a report by The Times of India, the country’s top five IT firms together added just 17 net employees in the first nine months of FY26, a dramatic fall from 17,764 net additions recorded during the same period last year. The near-zero growth underscores how sharply the operating environment has shifted for an industry long seen as a reliable engine of job creation.
The weak hiring numbers reflect a convergence of structural and cyclical pressures. Global demand for technology services has remained soft, as enterprises in key markets continue to rein in discretionary IT spending. At the same time, the increasing use of AI-driven delivery models is changing how work is executed, enabling companies to do more with fewer people and reducing the need for large-scale workforce expansion.
While Infosys, Wipro, HCLTech, and Tech Mahindra did report some increase in employee numbers, these gains were largely inorganic. Much of the headcount growth came through acquisitions rather than fresh campus or lateral hiring, signalling caution around adding new talent amid uncertain demand conditions. Organic hiring, once a key growth lever for these firms, has remained subdued.
Tata Consultancy Services (TCS), India’s largest IT services company, had the most significant impact on overall employment trends. The company reduced its workforce by 25,816 employees as part of a broader cost and efficiency drive, with job cuts concentrated mainly at the mid-level and senior layers. In the December quarter alone, the combined headcount of the five leading firms declined by 2,174 employees, reflecting ongoing rationalisation across the sector.
Looking ahead, the pressure on employment is unlikely to ease immediately. TCS has indicated that further exits are expected in the March quarter as it works toward a planned 2% reduction in its workforce. Taken together, the data points to an industry that is clearly prioritising cost discipline, productivity improvements, and margin protection over rapid expansion.
For India’s IT services sector, the current phase marks a decisive shift away from scale-led growth. With AI adoption accelerating and clients demanding more efficiency, companies are becoming more selective in hiring, focusing on critical skills rather than volume. The slowdown suggests that employment growth, once synonymous with the sector’s success, will now be far more tightly aligned with demand visibility and technological transformation.
