Indian IT firms curb fresh graduate hires and postpone onboarding amid AI shift
Major Indian IT companies are becoming more selective with entry-level recruitment and are delaying start dates for new graduates, citing project needs and AI-driven skill requirements.
India’s IT industry is tightening its entry-level hiring, with leading firms postponing onboarding for fresh graduates until specific projects materialize. Companies including IBM, Accenture, Oracle Financial Services Software and Cognizant have communicated that start dates now hinge on client demand and internal processes, causing some candidates to wait over a year. While the sector added only about 135,000 workers in 2026, the top five IT firms collectively shed 6,981 jobs in FY26 after a previous expansion.
The shift is driven by growing emphasis on AI, cloud, data analytics and cybersecurity, reducing fresh-graduate intake from roughly 28% to 15% of hires. Analysts note that Global Capability Centres are picking up some talent but cannot replace the volume once provided by traditional IT services. To stay employable, graduates are urged to acquire hands-on experience with AI tools, cloud platforms and related digital skills.
Why it matters
The slowdown and new skill focus affect millions of engineering graduates seeking jobs in India's largest employment sector.
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