'What We Need Is Technology Skills Plus Learnability'

AI is changing how IT companies hire, with skills like learning fast and solving problems now more important than degrees.

Artificial intelligence (AI) is changing the way technology companies are hiring -- shifting from credential-based recruitment to models that focus on adaptability and problem solving. Mphasis is one such example.

Internships Become the New Entry Gate

Mphasis, a mid-cap IT services firm, has not hired engineering graduates from campuses since the last two years.

Instead, it organises three to six months internship programmes, which has emerged as the source to recruit new employees.

Mphasis is focusing more on learnability as a skill during the hiring rather than specific competencies. It means engineers being ready to unlearn and relearn quicker in the age of AI.

"That has become the hiring pipeline for us as it focuses on live projects and new technology projects," said Nitin Rakesh, CEO and MD, Mphasis.

Hackathons Replace Interviews

"What we need is technology skills plus learnability, we do not do interviews as much as we do hackathons."

IT services companies are increasingly using hackathons as a launch pad to hire fresh talent and deal with the rapidly changing technology.

From Headcount to Outcomes

For years, the services industry had an inextricable link between revenue and headcount, with higher revenue being directly proportional to higher number of employees. But generative AI (Gen AI) and agentic AI have changed the hiring techniques with more focus on problem solving skills and ability to work as a team.

Why Learnability Matters More Than Skills

Engineering colleges encourage their students, especially in their second and third years, to participate in hackathons and gain relevant experience and certifications. Based on their performance, companies are often inclined to offer jobs after course completion.

TCS, Coforge already hire graduates through that route.

AI Reshapes the IT Workforce Pyramid

People with five years of experience and above will always be in demand as companies need domain skills in certain stacks depending on the requirement, Rakesh added.

"The pyramid will be more fluid and will take somewhat of a diamond shape," he said, referring to the traditional employee structure.

At the same time, Rakesh said that lower level engineering roles, typically referred to as L0 and L1, have become completely humanless as agents have taken over. L2 is assisted by agents.

"A solution is already incorporating domain architects, AI agents, human agents, and anybody else who is needed to deliver in the ecosystem. For that programme, whether I need the same number of people or half the people, it is of no consideration to the client.

"Earlier it was capacity based pricing but now it is outcome based," he said. "In the relearn phase, I may need just 20 per cent people, in the rewrite phase, I may need 50 per cent of what I needed earlier."

Feature Presentation: Rajesh Alva/Rediff