Even as India's top tech companies increased their headcount marginally in the March quarter, their hiring has slowed down. This trend is indicative of the industry's bearish approach amid global uncertainties.
Tata Consultancy Services (TCS), Infosys, and Wipro collectively added 1,438 personnel in Q4 FY25, reversing a 936-person decrease in the previous quarter. TCS led the additions with 625 new workers, followed by Wipro (614) and Infosys (199).
The figures indicate a shift from prior aggressive recruiting practices. The top five Indian IT firms reduced their headcount by 2,587 in the December quarter, compared to a significant increase of 15,033 in the September quarter, Economic Times reports.
For the complete fiscal year FY25, TCS, Infosys, and Wipro added 13,503 net personnel, compared to a 64,000 drop in FY24.
This slowdown in hiring comes as the Indian tech sector faces headwinds from macroeconomic volatility, tariff-related trade disputes, and an increasing dependence on automation and artificial intelligence.
Indian software giants are taking a wait-and-watch approach, particularly in light of recent tariff announcements from the United States and the larger impact on clients in North America and Europe.
Staffing agencies reported that demand for tech personnel fell roughly 20 per cent in Q4 FY25 compared to the previous quarter.
Active employment demand for IT services fell from 80,000 in February to 55,000 in March, according to data. Some businesses are deferring recruiting decisions and concentrating on replacing just vital positions.
According to Nasscom, India's IT industry hired over 1.26 lakh personnel in FY25, bringing the total workforce to 5.8 million, up from 5.6 million the previous year.
However, Global Capacity Centres accounted for the majority of the increase, as large IT corporations' net headcounts continued to fall.
Experts fear that protectionist measures and inflation concerns in the United States could further postpone the hiring recovery.
