Image Source: The Hindu Business Line
After years of aggressive recruitment and unpredictable attrition, India’s IT sector is finally settling into a more sustainable hiring pattern. According to Rahul Goyal, Managing Director of ADP India and Southeast Asia, the industry is now entering a phase of hiring normalisation, echoing trends last seen before the COVID-19 pandemic. This shift reflects a recalibration of workforce strategies, with companies focusing on essential skills, employee upskilling, and long-term stability.
Key Highlights from ADP’s Hiring Outlook
Post-pandemic hiring surges of 20,000 to 50,000 employees per company are now being replaced by cautious, skill-based recruitment.
The top five Indian IT firms added 12,718 employees in FY25, recovering from a net loss of over 70,000 in the previous fiscal year.
Attrition rates are stabilising, and companies are prioritising internal talent development over indiscriminate expansion.
Soft skills are gaining prominence alongside technical expertise, reshaping the profile of the ideal IT employee.
Hiring Trends: From Frenzy to Focus
Post-Pandemic Overstaffing
In the wake of the pandemic, IT firms ramped up hiring to meet surging demand for digital transformation.
Many companies onboarded tens of thousands of employees, anticipating long-term growth.
However, as demand plateaued and attrition soared, firms found themselves overstaffed and underutilised.
Return to Strategic Recruitment
Hiring is now more deliberate, with a focus on roles that directly impact business outcomes.
Companies are avoiding bulk hiring and instead targeting niche skills in AI, cybersecurity, and cloud computing.
The emphasis is on quality over quantity, with HR teams aligning recruitment with project pipelines.
Upskilling and Employee Adaptability
Rahul Goyal emphasised the need for employees to invest in continuous learning to remain relevant.
Domain-specific technical skills remain crucial, but soft skills like communication, teamwork, and people management are increasingly valued.
Companies are encouraging self-learning and offering internal training programs to bridge skill gaps.
ADP’s Role and Market Presence
ADP, a Nasdaq-listed HR and payroll solutions provider, has operated in India since 1999.
The company employs around 30,000 people and serves nearly 2,500 clients across sectors.
ADP processes payroll for close to one million employees in India, giving it a unique vantage point on workforce trends.
Industry-Wide Implications
The moderation in hiring is not a sign of stagnation but a move toward operational efficiency.
IT firms are now deploying freshers and bench resources more strategically, reducing the need for external recruitment.
The shift also reflects broader economic conditions, including cautious spending by global clients and the impact of generative AI on workforce planning.
Looking Ahead
While massive hiring spikes may be a thing of the past, steady and skill-driven recruitment will continue.
Companies are expected to maintain leaner teams with higher productivity and better retention.
The focus on adaptability and learning will define career growth in the IT sector over the next decade.
Conclusion
India’s IT hiring landscape is entering a new chapter—one defined by balance, foresight, and resilience. As firms move away from post-pandemic excesses and toward strategic workforce planning, employees too must evolve. With leaders like ADP’s Rahul Goyal highlighting the importance of skill and stability, the sector is poised for a more mature and sustainable future.
Sources: The Hindu BusinessLine
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