TCS, Infosys, Wipro scale back hiring amid rising attrition

By: Shantanu Bhattacharji

Rising attrition is driven by modest salary hikes, growing demand for digital skills like AI and cloud, and the appeal of faster growth at startups and global firms expanding in India.

India’s biggest tech companies are entering a new phase. After years of aggressive hiring, they’re now pulling back—adding fewer jobs while watching more employees walk out the door. The pandemic-era hiring surge is firmly behind them. In its place: caution, cost control, and a sharper focus on digital skills. 

Between April and June 2025 (Q1 FY26), the top five IT services firms—Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra—added just 4,703 net employees, according to Business Standard. But nearly all of that growth came from TCS, which added 5,090 workers. Infosys added a modest 210, while HCLTech, Wipro, and Tech Mahindra saw a combined reduction of 597 roles. 

This shift underscores the industry's new approach: hiring is no longer about headcount—it’s about high-skill roles. 

Not No Hiring—Just Smarter Hiring 

Indian IT companies aren’t freezing jobs, but they are being more selective. Recruitment now prioritises artificial intelligence, cloud computing, cybersecurity, and emerging tech—while roles tied to legacy systems or routine tasks are quietly fading out. At the same time, firms are investing more in internal upskilling and automation to boost output without adding more people. 

Attrition Ticks Up Again 

After a temporary lull, attrition is creeping back up, especially among mid-level employees. Professionals with in-demand skills are moving to AI startups, global capability centres, and multinational firms that are expanding their India operations. 

TCS reported an attrition rate of 13.8 per cent, up from 12.1 per cent a year ago. Wipro saw a rise to 15.1 per cent from 14.1 per cent, and Tech Mahindra jumped to 12.6 per cent from 10.1 per cent. Executives insist the churn is manageable, but it signals a more competitive landscape for retaining talent—particularly as salary hikes have been conservative, the financial daily reported. 

Recruiters say rising attrition is being driven by a mix of low wage growth amid global uncertainty, soaring demand for specialised digital skills like AI and cloud, and more attractive growth opportunities at younger startups and global firms expanding in India. 

Why are IT Firms Holding Back? 

The short answer: weak demand. Many clients in banking, retail, and manufacturing—India’s largest IT customers—are cutting back on tech spending. With fewer new projects in the pipeline, companies are hesitant to grow their teams. 

Instead, they’re prioritising efficiency and profitability. That means slower hiring, smaller raises, and a renewed emphasis on squeezing more from existing staff. 

The Road Ahead 

Unless global demand rebounds sharply, mass hiring is unlikely to return soon. The industry is shifting from broad-based growth to strategic workforce planning. Companies want fewer—but more skilled—employees. 

For job seekers, the message is clear: specialised digital skills are the new currency. Those working in AI, data engineering, cybersecurity, and cloud will find plenty of opportunities. Others may face longer waits or need to reskill to stay relevant. 

India’s IT sector isn’t shrinking—but it is changing. As growth slows and competition for top talent heats up, both employers and workers must adapt to a more selective, skills-driven future.