The Indian IT services segment has been marred by mass layoff announcements, particularly the recent layoffs in the largest IT services player, TCS. Though layoffs have been announced, there is also a green shoot in the fact that there would be specialised hiring in the sector, and there would be demand in a few skill sets.
Currently, the industry is witnessing a slowdown in hiring per se, but a recalibration toward highly specialised, future-forward roles. The emphasis is expected in precision hiring, and there would be demand for certain niche specialisations. THE WEEK spoke to several HR experts and consultants to gauge the kind of requirements for different positions across the IT services industry.
“We are seeing a demand for experts with expertise in Artificial Intelligence and Machine Learning, data engineering, cybersecurity, cloud-native development, and DevOps. Additionally, expertise in RPA (Robotic Process Automation), low-code or no-code platforms, data and business intelligence experts, and generative AI is becoming increasingly important.
These are not just value-adds anymore; they are becoming core to our client deliverables and expectations. Clients today are more tech-savvy and outcome-driven than ever before, and they expect partners who can bring strategic technology advantages, not just execution capability,” remarked Amruta Kharnal, Senior Manager, People and Culture at Beyond Key.
This expert points out that this also reflects a bigger trend: enterprises are ready to spend on fewer but better-qualified people who can jump right in, rather than training large pools of entry-level employees.
As a result, mid-level professionals with practical implementation experience are in high demand. “Cross-functional skills that combine technical experience with domain knowledge—particularly in finance, banking, healthcare, retail, logistics, and insurance are also in high demand,” added Kharnal.
Experts also point out that, of late, there has been a regional distribution of hiring as companies are increasingly embracing remote-first or hybrid work cultures, which enable them to tap into talent pools beyond traditional urban hubs. This is creating fresh chances for skilled workers in Tier II and Tier III cities who might have otherwise been neglected.
It is expected that over the next 6-12 months, hiring will be conservative yet focused. Contract-based or project-specific positions will be in high demand, particularly in AI, data science, and full-stack development.
Businesses will need a workforce structure that is adaptable enough to easily scale up or down in response to project demand and market trends. However, this does not suggest that corporations would compromise on quality; rather, the standard for talent has been raised.
Interestingly, this year the IT services sector has shifted from high-volume hiring to targeted recruitment of specialised professionals.
In 2025, the IT services sector has shifted from high-volume hiring to targeted recruitment of specialised professionals. Automation and AI tools have replaced many mid-level roles in QA, customer support, and routine development, prompting layoffs across major players in tech. “Despite structural job cuts, demand for specialist skill sets is rising. Hiring managers prioritise expertise in machine learning engineering, cloud DevOps, cybersecurity, prompt engineering, and AI model governance. Recruitment models are evolving rapidly.
Firms now favour staff augmentation and contract hires for project-specific needs, reducing fixed headcount while remaining agile. Skill assessments, behavioural, technical, and coding simulations are replacing traditional resume evaluations.
Equally significant is the demand for hybrid roles that combine domain expertise with strong soft skills. The ideal candidate now blends technical fluency (such as AI/ML or cloud architecture) with strategic thinking, adaptability, empathy, and ethical judgment. These qualities facilitate collaboration with non-technical stakeholders and contribute to trustworthy AI implementation,” Praveen Joshi, MD and a Founding Member of RSK Business Solutions, told THE WEEK.
Companies are also investing in reskilling and internal mobility. With talent shortages looming, IDC projects a 90 per cent deficit by 2026, and organisations are retraining existing staff in AI, cybersecurity, and cloud-native roles instead of hiring externally. Infosys’s approach showcases this shift: rejecting layoffs, prioritising upskilling, and building internal expertise to meet rising tech demand.
The compensation landscape reflects these changes. CloudZero and Investopedia report that AI and data engineering roles now command premium salaries, often far exceeding pay scales for traditional IT positions, reflecting critical gaps in talent supply.
“For professionals seeking relevance and resilience in this evolving landscape, the imperative is clear: build hybrid strengths, technical excellence combined with human-centric soft skills, and embrace lifelong learning. The future of IT services hinges on bringing together high-impact talent with innovative capabilities, a workforce defined not by scale but by strategic specialisation and organisational agility,” pointed out Joshi.
Experts also observe that the IT services sector is no longer in a hiring freeze; it is in a hiring reconfiguration. “The era of hiring for headcount is over; talent will be acquired based on impact, not volume. This transition rewards professionals with deep, hands-on expertise, strong learning agility, and cross-functional problem-solving skills. The recent wave of layoffs across major Indian IT services companies like TCS, Infosys, and Wipro, often rationalised as a “skills mismatch”, signals a fundamental pivot. The sector is shifting from volume-based hiring to high-skill, specialised recruitment, aligned with next-generation technologies and outcome-based client delivery models,” said Priya Manoj, Managing Partner, Urjja.
She adds that multiple things are driving this trend, such as AI and Automation, the redundancy of routine jobs, global slowdowns and margin pressures, wherein clients demand fewer but sharper resources, and the digital transformation mandates the need for specialists, not generalists.
“There would be specialised skill sets in need and demand, such as specialists and AI Model trainers. Product teams and IT services are both investing in smaller, senior teams with hands-on AI experience. There will also be demand for cloud platform engineers and DevOps with FinOps knowledge. There would also be a need for Cloud security analysts, SOC Experts, Zero Trust Architects, etc. Demand is now for engineers who can also understand business context (DataOps),” said Manoj.
The overall consensus has emerged that, currently, the overall hiring outlook in the IT services sector remains cautious, with most companies prioritising need-based recruitment over large-scale expansions.
“Rather than expanding headcount broadly, companies are focusing on specialised hiring in high-impact areas such as Artificial Intelligence and Machine Learning (AI/ML), Cloud Computing, and Cybersecurity. There is a rising demand for niche skills, including Generative AI and Prompt Engineering, LLM Fine-Tuning and Multimodal AI, Explainable AI and Bias Detection, MLOps and Agentic AI, Cloud-native development (e.g., Kubernetes, Docker), Serverless architectures (e.g., AWS Lambda), SOAR (Security Orchestration, Automation, and Response), and Ransomware protection and incident response,” explained Aditya Narayan Mishra, the MD and CEO of CIEL HR.
He added that in response to the rapid pace of technological transformation, many companies are also increasing their focus on hiring fresh talent, valuing their ability to adapt quickly and learn emerging technologies at speed.
