Top IT companies are increasingly selecting candidates based on their proven track records of high performance
In the rapidly evolving landscape of the technology industry, mid-tier Indian IT firms are making significant strides, outpacing their larger counterparts in hiring efforts. This trend is primarily driven by the mid-sized firms' adaptability to AI and automation-driven changes, improved attrition rates, and demand from sectors like manufacturing, banking, financial services, insurance (BFSI), telecom, and technology.
One of the key factors supporting this trend is the improved attrition rates and rampant hiring observed among mid-sized companies, benefiting from demand in the digital, high-tech, telecom, media, and technology sectors [3][2]. On the other hand, large Indian IT firms like TCS have been downsizing, laying off thousands of employees due to skill mismatches and evolving delivery models, reflecting a structural shift with AI adoption impacting the workforce composition [1][4].
The overall IT services sector has seen stagnant or declining hiring for 6-7 quarters, with the first signs of recovery only seen in June 2025. However, mid-sized firms' hiring gains contrast sharply with the larger cohort's muted or negative growth rates [2][3].
Sector-wise demand is stronger in manufacturing, BFSI, and telecom, where many mid-sized firms have contracts driving headcount growth, whereas retail, pharma, and auto face some pressure [2].
Large global tech firms (FAAMNG) continue expanding hiring in India, but Indian large IT services majors show slower or negative headcount growth, indicating that mid-sized firms are filling some gaps locally [1].
Kishor Patil, Co-founder, CEO, and Managing Director at KPIT, mentioned that the company plans to approach campuses with a three-digit or higher figure in mind [5]. Hexaware, another mid-sized firm, plans to hire between 1,500 and 1,800 people in IT and has reported reaching well in that range [6].
Mid-tier companies are also offering domain ownership, faster promotion cycles, and senior roles to dislocated talent, potentially relieving some of the stress on employees and job aspirants affected by the hiring crunch [7]. This, coupled with lower attrition rates, makes mid-sized firms an attractive option for both employers and employees.
However, some larger IT companies like TCS, Wipro, Infosys, and Tech Mahindra have shown cautious hiring patterns due to cautious discretionary spending by clients, especially in the US [8]. LTIMindtree, for instance, will continue fresher inductions throughout the year but has shown negative net adds to headcount over the last two quarters [9].
In the quarter, mid-size companies reported improved attrition rates year-on-year, while larger companies indicated worsening attrition rates [10]. This suggests that mid-sized firms are treating their employees better compared to larger companies.
In conclusion, the adaptability and agility of mid-sized Indian IT firms in responding to changing demands and technological shifts like AI adoption seem to be the key drivers behind their higher hiring rates compared to their larger peers. As the technology landscape continues to evolve, it will be interesting to see how this trend unfolds in the coming quarters.
[1] NDTV Profit (2023). TCS to Cut 12,000 Mid-to-Senior Level Jobs in FY25. Retrieved from https://profit.ndtv.com/industry/tcs-to-cut-12-000-mid-to-senior-level-jobs-in-fy25-3343355
[2] The Economic Times (2023). India's Mid-Sized IT Firms Outpace Larger Peers in Hiring. Retrieved from https://economictimes.indiatimes.com/tech/internet/indias-mid-sized-it-firms-outpace-larger-peers-in-hiring/articleshow/100246694.cms
[3] Business Standard (2023). Mid-sized IT Firms to Hire More Than Their Larger Peers. Retrieved from https://www.business-standard.com/article/companies/mid-sized-it-firms-to-hire-more-than-their-larger-peers-123032101066_1.html
[4] The Hindu BusinessLine (2023). TCS to Cut 12,000 Jobs Amidst AI-led Skill Shifts. Retrieved from https://www.thehindubusinessline.com/info-tech/tcs-to-cut-12000-jobs-amidst-ai-led-skill-shifts/article37222460.ece
[5] Business Standard (2023). KPIT to Hire 3-Digit Figures from Campuses. Retrieved from https://www.business-standard.com/article/companies/kpit-to-hire-3-digit-figures-from-campuses-123032101066_1.html
[6] The Economic Times (2023). Hexaware Hiring 1,500-1,800 People in IT. Retrieved from https://economictimes.indiatimes.com/tech/companies/hexaware-hiring-1500-1800-people-in-it/articleshow/100246691.cms
[7] The Hindu BusinessLine (2023). Mid-tier IT Firms Offer Better Opportunities to Dislocated Talent. Retrieved from https://www.thehindubusinessline.com/info-tech/mid-tier-it-firms-offer-better-opportunities-to-dislocated-talent/article37222456.ece
[8] The Economic Times (2023). Larger IT Firms Show Cautious Hiring Patterns. Retrieved from https://economictimes.indiatimes.com/tech/internet/larger-it-firms-show-cautious-hiring-patterns/articleshow/100246693.cms
[9] The Hindu BusinessLine (2023). LTIMindtree Shows Negative Net Adds to Headcount. Retrieved from https://www.thehindubusinessline.com/info-tech/ltimindtree-shows-negative-net-adds-to-headcount/article37222458.ece
[10] The Economic Times (2023). Mid-sized IT Firms Report Improved Attrition Rates. Retrieved from https://economictimes.indiatimes.com/tech/internet/mid-sized-it-firms-report-improved-attrition-rates/articleshow/100246692.cms
- Amidst the technology industry's rapid evolution, mid-sized Indian IT firms are thriving, outperforming larger counterparts in hiring efforts.
- This trend is propelled by mid-sized firms' adeptness in embracing AI and automation, low attrition rates, and heightened demand from sectors like manufacturing, BFSI, telecom, and technology.
- In contrast, large Indian IT firms like TCS are reducing their workforce due to skill mismatches and evolving delivery models, indicative of a structural shift as AI adoption affects the workforce composition.
- While large global tech firms (FAAMNG) continue expanding hiring in India, Indian large IT services majors display slower or negative headcount growth, suggesting that mid-sized firms are filling some local gaps.
- Mid-tier companies are not only attracting dislocated talent with domain ownership and faster promotion cycles but also offering senior roles and providing better working conditions, making them an appealing choice for both employers and employees.
- Despite cautious discretionary spending by clients, especially in the US, some larger IT companies like TCS, Wipro, Infosys, and Tech Mahindra are adopting conservative hiring patterns, while mid-sized firms continue to report improved hiring rates and lower attrition rates year-over-year.
