India’s IT Services Firms: Hiring and Attrition Trends in Q1 FY26
India continues to be a global leader in the IT services sector, where various companies are navigating through an intricate landscape marked by macroeconomic uncertainties and the increasing demand for specialized skills. As the first quarter of FY26 unfolds, major IT services firms in India have reported mixed hiring and attrition trends. While Infosys has yet to announce its figures, companies like Tata Consultancy Services (TCS), HCLTech, and Wipro are recalibrating their hiring strategies in response to market demands and conditions.
TCS Adds Over 6,000 Employees; Attrition Inches Up
Tata Consultancy Services (TCS), one of the largest IT services firms globally, recently disclosed that it added approximately 6,071 employees between April and June. This brings its total workforce to an impressive 613,069. However, the company reported a slight uptick in attrition, with the last twelve-month (LTM) rate reaching 13.8%, an increase of 50 basis points from the previous quarter.
Milind Lakkad, TCS’s Chief HR Officer, stated during a recent earnings call that the company does not plan to reduce its workforce due to the rise of artificial intelligence (AI). "We expect to hire as we had planned. The kind of jobs they will do is different," he assured investors and analysts. While TCS has honored all job offers made thus far, Lakkad indicated that lateral hiring may be adjusted based on future demand.
HCLTech Records Lowest Attrition; Plans to Increase Hiring by 15-20%
In contrast, HCLTech has emerged as a noteworthy player in the landscape with the lowest attrition rate among its peers, reporting an LTM rate of just 12.8% for Q1 FY26. This suggests a growing stickiness among employees, a positive sign in a competitive market. Despite a slight net reduction of 269 employees, HCLTech welcomed 1,984 freshers and has ambitious plans to increase hiring by 15 to 20% throughout the fiscal year.
What sets HCLTech apart is its strategic focus on specialization over sheer volume in its fresher intake. The company aims to attract niche talent by revising its compensation structures, with specialist roles offering salaries that can be three to four times higher than those of regular positions. The management asserted that their recruitment strategy is now intrinsically aligned with specific skill requirements, paving the way for a more tailored workforce.
Wipro Maintains Cautious Stance; Attrition at 15.1%
Wipro’s approach, however, remains more cautious compared to its industry counterparts. The company reported an attrition rate of 15.1%, a slight rise from 15% in the previous quarter, with total headcount standing at 233,232 following a decrease of 114 employees. Chief Human Resources Officer Saurabh Govil emphasized that Wipro plans to regulate hiring based on market demand, especially focusing on campus recruitment.
Wipro is also redirecting its efforts towards enhancing its AI talent pool through a combination of hiring and upskilling initiatives. "It will be a combination (of upskilling and acquiring new talent)… we’re comfortable paying a premium due to the scarcity of skilled AI professionals," Govil remarked. As with TCS, Wipro has yet to finalize its wage hike plans, a decision usually made in October.
Tech Hiring Outlook: Stable but Selective Hiring Ahead
The hiring landscape in the first quarter of FY26 reveals a segment marked by selective and strategic hiring practices among India’s leading IT firms. While some companies like TCS and HCLTech continue to expand their workforce, others are adopting a more cautious approach in the face of hiring fluctuations and market unpredictability.
As digital transformation and AI adoption become increasingly prevalent, firms are adeptly rethinking their workforce strategies. This includes balancing fresh hiring with internal upskilling and selective lateral additions, highlighting a dynamic shift in how IT services firms envision their human resources as they prepare for an evolving tech landscape.
The trends witnessed in Q1 FY26 serve as a reflection of how India’s IT sector is not only adapting to ongoing challenges but also embracing new opportunities, paving the way for a versatile and skilled workforce essential for future growth.