Indian IT hiring up 10% annually as entry-level roles shrink: foundit report
Synopsis
India's tech hiring is growing — just not where graduates expected. Overall IT occupation demand rose 10% annually, but traditional IT firms cut fresher intake sharply, with one in four entry-level IT jobs vanishing in a year. AI-operation roles are filling part of the gap, but the bigger story is that tech hiring has migrated to banks, manufacturers, and GCCs — reshaping where India's next generation of IT professionals will actually work.
Key Takeaways
India's IT occupation index rose 10 per cent year-on-year , while the IT industry index fell 6 per cent , per the foundit report released on 6 August .
One in four entry-level IT jobs has disappeared over the past year; overall fresher hiring fell 10 per cent year-on-year .
AI-led roles now account for 4 per cent of entry-level hiring, up from 1 per cent a year ago, with demand focused on operating and validating AI systems.
The 7–10-year experience band was the only cohort to grow, up 11 per cent year-on-year .
IT's share of fresher hiring fell from 32 per cent to 24 per cent , as tech roles migrate to banks, manufacturers, healthcare firms, and GCCs .
STEM graduates account for 42 per cent of all fresher hiring; medical roles recorded the largest functional gain, rising from 7 per cent to 11 per cent .
India's technology hiring is splitting into two sharply divergent tracks: overall demand for tech work climbed 10 per cent year-on-year even as entry-level IT industry roles contracted, according to a report released on Thursday, 6 August by job platform foundit. The data points to a structural shift in how and where technology talent is being absorbed across the Indian economy.
Key Findings from the Report
The IT occupation index — which tracks demand for tech skills across all sectors — rose 10 per cent year-on-year, while the IT industry index, measuring hiring within traditional IT firms, fell 6 per cent over the same period. This divergence signals that technology roles are increasingly being created outside conventional IT companies — in banks, manufacturers, healthcare firms, and global capability centres (GCCs).
The IT sector's share of fresher hiring dropped from 32 per cent to 24 per cent over the year, reflecting the migration of entry-level tech demand to non-IT industries. Overall fresher hiring declined 2 per cent month-on-month and 10 per cent year-on-year.
AI Reshaping Entry-Level Hiring
Artificial intelligence is accelerating the transformation. AI-led roles now account for 4 per cent of entry-level hiring, up from roughly 1 per cent a year ago. Notably, employers are not primarily recruiting graduates to build AI models — instead, they are seeking talent to operate, validate, and optimise existing AI systems. This distinction matters: it suggests demand is shifting toward applied AI skills rather than core research, putting a different kind of pressure on campus curricula and graduate readiness.
In effect, one in four entry-level IT jobs has disappeared over the past year even as aggregate tech demand has expanded — a paradox that underscores how automation is simultaneously destroying some roles and generating others in adjacent functions.
Experience Premium and Sectoral Shifts
Among experience cohorts, the 7–10-year band was the only group to record growth, rising 2 per cent month-on-month and 11 per cent year-on-year. Employers appear to be prioritising mid-career professionals who can manage AI-enabled workflows with minimal ramp-up time.
Across functions, medical roles recorded the largest gain in fresher hiring share, jumping from 7 per cent to 11 per cent. Sales and business development rose from 18 per cent to 20 per cent, and engineering and production climbed from 6 per cent to 8 per cent. STEM graduates continue to dominate entry-level absorption, accounting for 42 per cent of all fresher hiring.
What the Industry Is Saying
Tarun Sinha, Chief Executive Officer of foundit, argued that companies continuing to hire graduates through a slow cycle are making a long-term bet. 'The organisations that keep hiring graduates through a slow year are investing in future capability — they're building tomorrow's leadership pipeline rather than competing for an increasingly expensive experienced workforce a few years down the line,' Sinha said.
What to Watch
The data suggests that India's IT employment story is no longer synonymous with the IT industry alone. As GCCs expand and non-tech sectors deepen their technology investments, the geography of tech hiring will continue to broaden. Whether fresher absorption recovers will depend on how quickly graduates can align their skills with the AI-operation and validation roles that employers are now prioritising.
Point of View
Banks, and manufacturers is not a temporary blip; it reflects a permanent broadening of where digital infrastructure is being built. What the foundit data does not yet capture is whether India's graduate pipeline is pivoting fast enough — the jump in AI-operation roles from 1% to 4% of fresher hiring sounds modest, but it represents a tripling in one year. If that trajectory continues, the mismatch between what colleges produce and what employers need will widen faster than policy can respond.
NationPress
6 Aug 2026
Frequently Asked Questions
Why is India's IT hiring growing overall but falling for freshers?
Overall tech demand rose 10% year-on-year because technology roles are expanding across banks, manufacturers, healthcare firms, and GCCs — not just traditional IT companies. However, IT firms themselves cut fresher intake, pushing the IT industry's share of entry-level hiring from 32% to 24%, resulting in a net decline in campus absorption.
What is driving the rise in AI-related entry-level jobs?
AI-led roles now make up 4% of entry-level hiring, up from 1% a year ago, according to the foundit report. Employers are primarily recruiting graduates to operate, validate, and optimise AI systems rather than to build AI models from scratch.
Which experience band is in highest demand in the IT sector right now?
The 7–10-year experience band is the only cohort recording growth, up 2% month-on-month and 11% year-on-year. Employers appear to be prioritising mid-career professionals who can manage AI-enabled workflows with limited ramp-up time.
Which non-IT sectors are absorbing more tech and fresher talent?
Banks, manufacturers, healthcare companies, and global capability centres are increasingly hiring technology talent, according to the foundit report. Medical roles recorded the largest functional gain in fresher hiring, rising from 7% to 11%, while sales and engineering functions also expanded their share.
What did foundit CEO Tarun Sinha say about companies still hiring freshers?
Tarun Sinha said companies that continue hiring graduates during a slow year are 'investing in future capability' and building a leadership pipeline rather than competing later for expensive experienced talent. He framed sustained fresher hiring as a long-term strategic choice, not a short-term cost.
