India’s largest IT services firm, Tata Consultancy Services (TCS), is adopting a cautious hiring strategy for FY27, reflecting shifting industry dynamics and global economic uncertainty. The company has rolled out 25,000 job offers to fresh graduates for the 2026-27 fiscal year, a noticeable moderation compared to previous years when annual fresher hiring consistently crossed 40,000.

TCS CEO K. Krithivasan stated that any further campus recruitment will be directly linked to demand visibility and project pipelines. The move signals a shift from bulk hiring toward a more demand-driven model. In FY26, the company onboarded around 44,000 freshers despite macroeconomic challenges, but the current intake reflects a calibrated approach to workforce expansion.

A key factor behind this moderation is the time required for freshers to become productive. New hires typically need close to nine months of training before they can contribute to billable projects. In contrast, lateral hires can be deployed immediately, prompting TCS to balance its hiring mix more strategically. TCS Salary Hike 2026: What Tata Consultancy Services Employees Need To Know.

Addressing concerns around layoffs, Krithivasan clarified that the reduction of nearly 12,000 employees last year was not driven by the rise of Artificial Intelligence. Instead, it was part of organizational restructuring aimed at streamlining senior management layers and improving operational efficiency. He emphasized that high-performing employees continue to have strong growth prospects within the company. TCS Salary Hike 2026: IT Giant Resumes April Increment Cycle With Double-Digit Raises for Top Performers.

On the business front, TCS remains optimistic. The company reported a strong total contract value of $40 billion for FY26, with improved deal conversion rates and early signs of recovery in discretionary spending across global markets. CFO Samir Seksaria highlighted ongoing efforts to enhance margins through better employee utilization and internal efficiencies.

Looking ahead, TCS is focusing on strategic acquisitions, deepening technology partnerships, and investing heavily in workforce upskilling, particularly in AI and digital capabilities. The hiring moderation mirrors a broader trend across India’s IT sector, where companies are moving toward a just-in-time hiring model aligned with real-time business demand rather than maintaining large bench strength.

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(The above story first appeared on LatestLY on Apr 13, 2026 09:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).