Roles that mention AI in software development have grown 138 per cent between Q2 2024 and Q2 2026.
Nasscom said while the visa programme has been used by companies to address the skill gap in the US by bringing in foreign employees, the number of H-1B employees from Indian companies have come down substantially over the last decade.
Indian IT companies have significantly reduced their fresh H-1B visa applications for US FY27, a direct consequence of soaring fees imposed by the Trump administration and new lottery system changes that prioritise higher-salaried employees, leading to a seven-year low in registrations.
'For every 10,000 applicants, even an additional Rs 300 to Rs 700 per candidate for testing, assessment administration and re-screening can mean Rs 30 lakh to Rs 70 lakh extra at the hiring-stage cost before training begins.'
As of January 2026, the number of active job openings stood at 103,000, down 24 per cent from 136,000 in the same period last year.
'Headcount expansion is more likely in revenue-linked and product-critical teams than in broad based hiring.'
'Companies will need to revisit compensation structures, contracts, staffing models, and human resources system.'
Hiring demand is strongest for high-impact technology and product roles, particularly DevOps engineers, product managers, and full-stack developers.
Companies typically face challenges in recruiting candidates who are skilled in AI, machine learning and generative artificial intelligence though they have hundreds of vacancies.
While TCS cited evolving business needs and future readiness as reasons, industry experts say the action is a cost-cutting measure aimed at improving operating margins that have remained below the firm's aspirational range despite multiple efforts.
More than 7,700 senior professionals with over 15 years of experience have exited India's IT services firms -- TCS, Infosys, Wipro, HCLTech, Tech Mahindra, Cognizant, and LTIMindtree -- over the past 12 months.
'Advanced skills is such a broad spectrum that a simple prompt engineer to a critical upper end LLM developer are clubbed under one.' 'In addition, some include their non-technical employees who can use AI tools under this talent base.'
'People are taking effort to train and adapt to current skills.' 'If that is not there, they are not useful to us.' 'They have to adapt to new technology, and what is important is learnability.'
'As more and more work becomes automated and a range of lower-level and higher-level tasks are replaced by AI, the need for a classic command-and-control pyramid structure goes away.'
IT attrition rate is expected to be around 12% to 13% this year.
The good news is that salary hikes are expected, though it is uncertain when they will be implemented.
With the rush of growth after the pandemic slowing down, many leaders are moving to firms that may be smaller but are growing much faster and have the headroom to grow.
'Both campuses and talent should brace for a low-velocity campus hiring season that might extend into the off-campus period.'
'The top five IT giants are not hiring, but most of the freshers want to start their careers with the top five IT firms.' 'In today's scenario this is a challenge.'
While praising the internship scheme announced in the Budget, India Inc wants clarity on how it will be implemented. The scheme is expected to help companies address the skill gap in employment. Dheeraj Hinduja, chairman, auto major Ashok Leyland, said: "We had started an internship programme at our plant in Pantnagar, which we established in 2010 with colleges there.
'In the second half of 2024, about 60% of startup jobs will be taken by entry-level candidates with 0-3 years of experience.'
In 2024 so far, 20 startups have already visited the campus with 80 placements.
As the job markets open up, top IT services firms may look at a tiered strategy in which they hire entry-level talents at higher salaries, amid a major technological shift, say HR analysts.
Tata Consultancy Services (TCS), India's largest IT services firm, is planning to increase salaries by an average of 7-8 per cent for its offsite employees and 2-4 per cent for its onsite staffers in 2024-25. High performers can expect a raise of 12-15 per cent. The company, which had a headcount of 603,305 as of December 31, 2023, will be closely looking at the promotions and the process may also get pushed to the first quarter of FY25, revealed a source on condition of anonymity, because he is not authorised to speak to the media.
'AI may perform tasks, but deep expertise and specialisation remain uniquely human.'
'It is a sign of a bigger problem which is coming in the next six months.'
US media reports that Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, could be the latest technology giant to downsize its workforce have triggered trepidation among its 300-400 employees in India, according to people familiar with the matter. "We have not heard much about the impact (of downsizing) on India. "It's a wait-and-watch situation. Certainly, there is uncertainty," said a source.
Manisha Sharma (name changed) was always among the high achievers in her company. She was recognised and rewarded for those efforts as well. Mid-December 2022, however, she received a jolt: an email informing her that she had been laid off - along with several of her colleagues. Sharma worked for a big tech firm, which had decided to downsize. And just like that, she was asked to go. "It did come as a shock," she says. "I did not take calls for the first two days, but then realised there is no point in beating oneself up for a situation that's not in your hand. "I thought let this be an opportunity to take a break. I'll now start looking for a job," she adds.
'Enterprises have become more demanding in terms of their productivity expectation from their employees.'
