Challenges for Fresh Graduates: The Indian IT Sector Faces Job Cuts and Onboarding Delays
India’s IT sector is undergoing a significant transformation in hiring practices, particularly for fresh graduates. Major firms are becoming more selective in their talent acquisition, often delaying onboarding processes for new hires. Companies such as IBM, Accenture, Oracle Financial Services Software, and Cognizant have informed candidates that their joining timelines depend on project availability and business needs, leaving many engineering graduates waiting months or even over a year to start their careers.
Experts indicate that the hiring landscape is shifting towards a project and demand-driven model, moving away from the previous trend of hiring freshers in large numbers to bolster bench strength. This change reflects a broader reset in the IT sector, as India’s five largest IT companies cut a net total of 6,981 jobs in FY26 after adding 12,718 in FY25. Meanwhile, Nasscom estimates that the industry’s workforce grew by only 1.35 lakh to reach 5.9 million in 2026.
How AI is reshaping the IT industry fresher hiring
Despite some positive signs, such as the addition of 5,400 employees by India’s six largest IT companies in the first quarter of FY27, the outlook for freshers remains uncertain. The hiring process is increasingly focused on specialized skills, particularly in areas like AI, data engineering, and cybersecurity. Neeti Sharma, CEO of TeamLease Digital, notes that companies are now looking for graduates who can contribute immediately using AI tools, rather than those who require extensive training.
Freshers now account for about 15% of hiring, down from nearly 28% a few years ago. The traditional model of high-volume campus recruitment is being replaced by a more selective approach that prioritizes candidates with relevant skills. Experts believe that the demand for entry-level talent is declining, as AI continues to automate routine tasks, leading companies to reassess their hiring strategies.
GCCs as talent absorbers: But, how much?
As the IT sector evolves, Global Capability Centres (GCCs) are becoming key players in talent absorption. These offshore centers handle various functions for multinational companies, including technology and analytics. Jang Bahadur Singh from Aon Hewitt highlights that GCCs are shifting from execution-oriented roles to those focused on innovation and global capability building, creating opportunities for engineering graduates.
However, the scale of hiring by GCCs does not match that of traditional IT services companies. Anil Ethanur from Xpheno points out that while GCCs have increased their hiring from around 85,000 freshers two years ago to over 130,000 today, their recruitment model focuses on specialized skills rather than large-scale campus drives. Hiring freshers from campus placements remains costly, with enterprises needing to allocate significant budgets for compensation.
What skills are needed to stay relevant?
In this changing landscape, fresh graduates must acquire a diverse skill set to enhance their employability. Jang Bahadur Singh emphasizes that technical proficiency alone is insufficient; employers are looking for a blend of technology fluency, problem-solving abilities, and communication skills. Graduates should focus on developing expertise in AI, data analytics, automation tools, and cybersecurity.
TeamLease’s Neeti Sharma adds that hands-on experience with AI tools and real-world problem-solving projects is becoming more valuable than traditional certifications. As the demand for AI-related skills grows, engineering graduates must continuously upskill and adapt to the evolving job market. Aon’s research indicates that organizations are increasingly favoring candidates who demonstrate critical thinking, adaptability, and the ability to learn continuously.
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