India’s top 6 IT firms net hired only 3,847 employees in April-June, down 72% QoQ
The Indian IT industry, which has been a significant contributor to the country’s GDP, has been experiencing a slowdown in hiring in recent quarters. The latest data from the top six Indian IT firms, including TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree, reveals that they net hired only 3,847 employees in the April-June 2025 quarter, a significant decline of 72% from the 13,935 net hirings they undertook in the previous quarter.
While the Indian IT industry has been facing challenges such as a slowing economy, intense competition, and increasing automation, the sharp decline in hiring is a cause for concern. Only two of the top six IT firms, TCS and Infosys, reported a net increase in headcount, adding 5,060 and 210 employees respectively. On the other hand, HCLTech, Wipro, Tech Mahindra, and LTIMindtree together saw a net decline of 1,423 employees.
The data from these top six IT firms is a clear indication that the industry is facing a significant slowdown in hiring. The industry has been experiencing a decline in demand for its services, particularly from the US and European markets, which have been struggling with economic slowdowns. Additionally, the industry has been facing intense competition from low-cost countries such as the Philippines, Vietnam, and Brazil, which have been aggressively marketing themselves as attractive destinations for IT services.
The slowdown in hiring is also a reflection of the industry’s focus on cost optimization and efficiency. Many IT firms have been adopting automation and artificial intelligence to reduce costs and improve productivity, which has led to a decline in their hiring needs. Additionally, the industry has been experiencing a shift towards more flexible and agile work arrangements, which has reduced the need for large-scale hiring.
The decline in hiring is also a result of the industry’s efforts to reduce its dependence on traditional IT services such as software development and maintenance, and focus more on emerging areas such as cloud computing, cybersecurity, and data analytics. While these areas are expected to drive growth in the long term, they require specialized skills and expertise, which may not be readily available in the short term.
The slowdown in hiring has significant implications for the Indian economy, which has been heavily reliant on the IT industry for growth. The industry has been a significant contributor to the country’s GDP, and any decline in its growth can have a ripple effect on the overall economy. Additionally, the decline in hiring can lead to a shortage of skilled professionals, which can impact the industry’s ability to deliver high-quality services to its clients.
In conclusion, the decline in hiring by India’s top six IT firms is a clear indication of the industry’s slowdown. While the industry is expected to recover in the long term, the current situation is a cause for concern. The industry needs to focus on cost optimization, efficiency, and emerging areas such as cloud computing and cybersecurity to drive growth and reduce its dependence on traditional IT services.
