As AI reshapes entry-level jobs, India's IT industry grapples with developing future talent
India's major IT firms are significantly reducing fresh graduate hiring as artificial intelligence reshapes employer skill demands. Tata Consultancy Services' intake in financial year 2026 was less than half its level four years prior, while Infosys recruited about 80 percent fewer fresh graduates in financial year 2025 than three years earlier, according to company reports.
The traditional model of Indian IT companies hiring graduates in bulk and developing them over time is changing. Infosys co-founder Nandan Nilekani noted that AI is increasingly taking over coding tasks typically handled by junior engineers. This shift has led major firms to reduce their fresh graduate intake, now expecting new hires to possess greater technical depth and a better understanding of business problems from the outset, according to Mansee Singhal of Marsh Workforce & Rewards.
This evolving landscape demands practical skills beyond strong academic grades. Students like Arpita Dayama are now expected to demonstrate hands-on experience with data science projects and work involving agentic artificial intelligence. This includes the ability to explain technical work clearly while also delving into granular details when questioned, highlighting a need for both high-level comprehension and specific technical proficiency.
Employers now seek graduates who can connect technology solutions directly to business outcomes, requiring new skills around client needs, business transformation, and managing technology. Sumit Sarawgi of Oliver Wyman noted that multinational company centers in India are also moving towards more complex roles involving innovation and specialized industry knowledge, moving beyond routine back-office operations. This indicates a move away from foundational coding as the primary entry-level skill.
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