Mass hiring of freshers at the entry level is slowing in the tech industry as companies move from volume-led hiring to a value-driven, skill-first approach, recruiting freshers based on specialised capabilities amid rapid automation and AI-driven digital transformation.
While base salaries for bulk hires remain largely flat, in the Rs 2.8-3.6 lakh per year range, freshers being hired for specialised skills are drawing up to Rs 12-15 lakh a year, according to data from recruitment firms like Adecco, Quess and NLB Services.
Demand for niche skills such as artificial intelligence (AI), cloud, and cybersecurity is on the rise.
“Specialised hiring is growing fast even as bulk hiring is muted,” said Sanketh Chengappa KG, director and business head – professional staffing at Adecco India. “While still a small percentage, this segment is getting disproportionate attention and investment.”
While overall hiring by technology services companies remains flat this year, the quantum of premium hiring has steadily risen to 15-20% of overall hiring in FY25 from 10-15% in FY24.
Slowdown in traditional IT spending is pushing firms to optimise cost but invest in high-margin, skilled roles,” Chengappa said.
Demand for AI and machine learning (ML) roles alone rose 36–39% year-on-year in 2025, even as overall tech hiring slowed, NLB Services said.
“The middle managers are in a difficult spot – both from cost and skills perspective,” said Neeti Sharma, CEO of TeamLease Digital. “With AI, automation, and cloud becoming the norm, businesses now want smaller, smarter teams with agility to learn and upskill on the go.”
She explained that mid-level roles like project managers, testers, and system analysts are not as needed unless they also have expertise in areas like DevOps, AI/ML, cybersecurity, or product management.
Kapil Joshi, CEO of Quess IT Staffing, said median salaries in Indian IT companies are trending upwards to between Rs 4 lakh and Rs 10 lakh a year, even though entry-level offers remain flat.
Software engineers can earn from Rs 15 lakh to Rs 45 lakh per annum (lpa), depending on experience. Increments this year are averaging 5–12%, with top talent in niche roles seeing hikes of up to 18%, he said.
Diverse sourcing
As traditional campus pipelines fall short for emerging tech roles, companies are now diversifying their sourcing strategies to find specialised talent.
While campus hiring remains a central strategy, recruiters are now tapping bootcamps, GitHub, Kaggle and gig-based project hiring to source this premium talent, experts noted.
Quess’ Joshi observed that companies are targeting AI-powered recruitment platforms, edtech collaborations and hackathons, and specialist staffing firms.
Remote talent sourcing and gig-based project hiring from within India and globally has also opened up access to a distributed and flexible talent pool, he said.
“Internal talent marketplaces are on the rise as skill-first hiring is becoming mainstream,” Joshi said.
Companies are now using coding tests, project portfolios, and online assessments to identify talent from unconventional backgrounds. Boomerang hiring and alumni engagement are growing as companies seek out proven performers for complex roles, experts said.
“There’s also a shift toward structured hiring in non-metro colleges, backed by bootcamp partnerships, ‘train-and-deploy’ models, and remote work flexibility,” said Sachin Alug, CEO of NLB Services. “The approach is now skills-first focused on project ability, certifications and learning agility, rather than pedigree alone.”
Campus calls
Colleges like Amity University, Lovely Professional University (LPU), and Manipal Institute of Technology (MIT) have reported a decline in demand for entry-level coders.
Ashok Kumar Mittal, chancellor of LPU, said the industry in investing in future-ready talent and rewarding students who upskill in high-impact tech domains. However, core software engineering and support roles are still being recruited in stable numbers.
“This year, recruiters are placing greater emphasis on domain knowledge, practical exposure, and internship experience,” he said.
Anjani Kumar Bhatnagar, head- placements at Amity University, said recruiters are seeking more than basic aptitude.
“With the ongoing and rapid expansion of artificial intelligence and related technologies across the business landscape, there has been a substantial decline in demand for entry-level coders who lack advanced, specialised expertise,” he said.
Companies are recruiting with a one-year internship model, where students are expected to join the company a year prior (pre-final year), Bhatnagar said. Many companies are adopting a PPO (pre-placement offer) model where students are getting hired as an intern for a minimum of six months and converted to a full-time employee based on performance, he added.
Sriram, associate director, industry liaison, placement and practice school, at MIT, said, “The demand for plain vanilla skills is coming down… Future hiring will be based on specific skill sets. Branch-specific hiring may soon become skill-specific,” he added.
While base salaries for bulk hires remain largely flat, in the Rs 2.8-3.6 lakh per year range, freshers being hired for specialised skills are drawing up to Rs 12-15 lakh a year, according to data from recruitment firms like Adecco, Quess and NLB Services.
Demand for niche skills such as artificial intelligence (AI), cloud, and cybersecurity is on the rise.
“Specialised hiring is growing fast even as bulk hiring is muted,” said Sanketh Chengappa KG, director and business head – professional staffing at Adecco India. “While still a small percentage, this segment is getting disproportionate attention and investment.”
While overall hiring by technology services companies remains flat this year, the quantum of premium hiring has steadily risen to 15-20% of overall hiring in FY25 from 10-15% in FY24.
Slowdown in traditional IT spending is pushing firms to optimise cost but invest in high-margin, skilled roles,” Chengappa said.
Demand for AI and machine learning (ML) roles alone rose 36–39% year-on-year in 2025, even as overall tech hiring slowed, NLB Services said.
“The middle managers are in a difficult spot – both from cost and skills perspective,” said Neeti Sharma, CEO of TeamLease Digital. “With AI, automation, and cloud becoming the norm, businesses now want smaller, smarter teams with agility to learn and upskill on the go.”
She explained that mid-level roles like project managers, testers, and system analysts are not as needed unless they also have expertise in areas like DevOps, AI/ML, cybersecurity, or product management.
Kapil Joshi, CEO of Quess IT Staffing, said median salaries in Indian IT companies are trending upwards to between Rs 4 lakh and Rs 10 lakh a year, even though entry-level offers remain flat.
Software engineers can earn from Rs 15 lakh to Rs 45 lakh per annum (lpa), depending on experience. Increments this year are averaging 5–12%, with top talent in niche roles seeing hikes of up to 18%, he said.
Diverse sourcing
As traditional campus pipelines fall short for emerging tech roles, companies are now diversifying their sourcing strategies to find specialised talent.
While campus hiring remains a central strategy, recruiters are now tapping bootcamps, GitHub, Kaggle and gig-based project hiring to source this premium talent, experts noted.
Quess’ Joshi observed that companies are targeting AI-powered recruitment platforms, edtech collaborations and hackathons, and specialist staffing firms.
Remote talent sourcing and gig-based project hiring from within India and globally has also opened up access to a distributed and flexible talent pool, he said.
“Internal talent marketplaces are on the rise as skill-first hiring is becoming mainstream,” Joshi said.
Companies are now using coding tests, project portfolios, and online assessments to identify talent from unconventional backgrounds. Boomerang hiring and alumni engagement are growing as companies seek out proven performers for complex roles, experts said.
“There’s also a shift toward structured hiring in non-metro colleges, backed by bootcamp partnerships, ‘train-and-deploy’ models, and remote work flexibility,” said Sachin Alug, CEO of NLB Services. “The approach is now skills-first focused on project ability, certifications and learning agility, rather than pedigree alone.”
Campus calls
Colleges like Amity University, Lovely Professional University (LPU), and Manipal Institute of Technology (MIT) have reported a decline in demand for entry-level coders.
Ashok Kumar Mittal, chancellor of LPU, said the industry in investing in future-ready talent and rewarding students who upskill in high-impact tech domains. However, core software engineering and support roles are still being recruited in stable numbers.
“This year, recruiters are placing greater emphasis on domain knowledge, practical exposure, and internship experience,” he said.
Anjani Kumar Bhatnagar, head- placements at Amity University, said recruiters are seeking more than basic aptitude.
“With the ongoing and rapid expansion of artificial intelligence and related technologies across the business landscape, there has been a substantial decline in demand for entry-level coders who lack advanced, specialised expertise,” he said.
Companies are recruiting with a one-year internship model, where students are expected to join the company a year prior (pre-final year), Bhatnagar said. Many companies are adopting a PPO (pre-placement offer) model where students are getting hired as an intern for a minimum of six months and converted to a full-time employee based on performance, he added.
Sriram, associate director, industry liaison, placement and practice school, at MIT, said, “The demand for plain vanilla skills is coming down… Future hiring will be based on specific skill sets. Branch-specific hiring may soon become skill-specific,” he added.