HCLTech, which has delivered industry-leading growth for two consecutive fiscals, is treading a similar path. In the July earnings call, chief people officer Ramachandran Sundararajan said the fresher intake was no longer based on just numbers, but skills and specialisation. It has revisited its compensation plan. “For the regular cadre, the base compensation is ₹4.25 lakh. The specialist or elite category is now 3x higher than the base compensation on the services side. On the software side, it’s upwards of 4x,” he had said.

For companies, the new North Star is clear: right skill sets, a closer scrutiny of existing talent, and a more targeted approach to freshers. “Quality and value contribution have taken precedence over volume,” explains Sunil Chemmankotil, country manager, Adecco India, a workforce solutions provider.

The transition is already underway, but the full impact is still unfolding. Roles that involve repetitive, rules-based tasks and routine infrastructure management are at risk.

Careers of tomorrow

Large IT firms posted moderate growth in Q1FY26. While the profitability outlook hasn’t changed, the growth projection saw a tightening at the lower end of the revenue guidance rather than the upper end. Global uncertainties, project delays, and tariff-related pressures keep the focus of companies on efficiency, vendor consolidation, and AI-led transformation.

According to Quess Corp’s IT staffing CEO Kapil Joshi, high demand for niche skills is driving the attrition between 12% and 18%. And this is prompting firms to focus on retention and skill-based hiring over generic roles. “Hiring is picking up selectively, with fresher intake expected to double this year to over 150,000 graduates, alongside strong demand for specialised roles... Tier II and III cities are emerging as important talent hubs, while flexible staffing and subcontracting are helping firms manage costs and utilisation,” Joshi says, even as he expects IT companies to be cautious while hiring.

The demand for new skills has driven large-scale workforce upskilling and global benchmarking of AI capabilities. IT firms are drawing up retention strategies, enhanced internal mobility programmes, and long-term career development opportunities. Adecco India sees a strong traction in project-led demand, particularly in pharma, BFSI, gaming and entertainment, aviation, retail and manufacturing as employers favour digital-first and skill-adjacent hiring. “Demand for AI/machine learning engineers, data analysts and data engineers, DevOps engineers, cloud and network security engineers, software developers, IT project managers, and business analysts remains strong, with an estimated 20% upswing over the same quarter in FY25,” says Chemmankotil.

With an AI-led transition on track, niche-skilled freshers and cross-trained professionals are the new reality of the IT sector.

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AI reshapes workforce as IT firms shift to high-tech talent