Slowdown hits Indian IT companies’ campus recruitments

As Indian IT services companies are battling macro uncertainty and tech spend slowdown, they have reduced their campus visits and applied brake on freshers hiring.

The IT service business model, which relies on pyramid structure with its base constituting young and less expensive employees, has been shrinking. In FY24, both TCS and Infosys saw the share of young employees in their total headcount plunge to a five-year low and a decadal low, respectively.

Pyramid optimisation is one of the tools that IT service companies use to boost their operating margins. With experts expecting tech spend revival at the fag end of this fiscal, Indian companies are likely to see an improvement in their share of young mass of employees from next year.