The prolonged contraction in IT services headcount is showing tentative signs of reversing, with quarterly data from leading firms pointing to a floor in workforce reductions after one of the sharpest periods of downsizing in the industry's history.
TCS, which shed tens of thousands of employees across three consecutive quarters of declines including a record net reduction of 19,755 in the September 2025 quarter, returned to positive net hiring in the January–March 2026 quarter, adding 2,356 employees. The momentum continued into the April–June 2026 quarter, when the company added more than 9,200 employees, its strongest quarterly intake in over three years.
The broader picture across the top five IT services firms including TCS, Infosys, Wipro, HCLTech, and Tech Mahindra remains mixed. Combined headcount fell by around 7,389 employees in FY26, compared with a net addition of 12,718 in FY25. The decline was concentrated at TCS, while Infosys and Wipro posted net additions during the year. HCLTech grew its workforce and significantly increased its fresher intake.
Attrition is a complicating factor. Voluntary attrition across the sector is running at roughly 13–15 per cent, meaning a substantial share of ongoing hiring is backfill rather than genuine expansion. Skill-focused recruitment particularly in AI, cloud, and cybersecurity continues to outpace broad-based hiring.
For working professionals, the data matters in practical terms: the era of mass campus recruitment and bulk lateral hiring that defined the pandemic-era boom is unlikely to return. Companies are prioritising candidates with specialised skills, and existing employees face growing pressure to upskill. Those in AI, data engineering, and cybersecurity are best positioned, while mid-career generalists may find the market more selective than in previous cycles.
