India’s IT services industry is undergoing a profound transformation, shifting away from the traditional model that once relied heavily on mass hiring for entry-level roles, known as Level 1 or L1 positions. This model, which fueled decades of rapid growth and workforce expansion, is steadily becoming obsolete. The driving forces behind this change are automation, artificial intelligence, and evolving expectations from the tech workforce. Leading IT giants such as Tata Consultancy Services and Wipro exemplify this shift; Wipro’s fresher hiring plummeted from 38,000 two years ago to just 10,000 in fiscal year 2025—a stark indicator of changing recruitment priorities.
“The threshold to enter the field has been lowered, but the bar for excellence is higher than ever,” said Mohit Saxena, CTO and Co-founder of InMobi. His observation highlights how AI is widening the divide between average engineers and those who stand out. Routine coding and testing tasks, once the backbone of entry-level programming jobs, are now increasingly handled by generative AI tools like GitHub Copilot and ChatGPT. These advancements mean companies are no longer just looking for coders—they want engineers who can think critically and solve complex problems.
“Prompt engineering is the new benchmark,” noted Neeti Sharma, CEO of TeamLease Digital. This emerging skill—crafting effective queries and commands to get the best results from AI tools—is becoming a key differentiator. Alongside it, the demand for system-level thinkers with deep domain expertise has surged. Engineers are now expected to understand broader contexts, integrate AI capabilities intelligently, and drive innovation rather than simply follow instructions.
The disappearance of many L1 roles has forced companies, particularly Global Capability Centres (GCCs), to rethink their talent acquisition strategies. Instead of casting a wide net with mass hiring, these organizations are becoming highly selective, focusing on quality over quantity. Internships have emerged as critical gateways to premium tech roles, with GCCs handpicking candidates through targeted, domain-specific programs rather than broad campus drives. “They don’t go to all colleges; they’re very choosy,” Sharma explained, underscoring how the hiring landscape is narrowing its focus to find talent that aligns with specialized needs.
This shift signals a broader trend in India’s IT industry—a move from volume-based hiring to a quality-driven approach that leverages AI to boost productivity and innovation. It reflects the increasing sophistication of the sector, as businesses demand engineers capable of navigating a rapidly evolving technological landscape. For freshers and early-career professionals, the message is clear: adapting to this new paradigm requires more than just coding skills. It demands curiosity, strategic thinking, and the ability to collaborate with AI as a partner in development.
India’s IT industry has long been a global powerhouse, and this evolution is poised to keep it at the cutting edge. By fostering a generation of engineers who can think critically and harness AI effectively, the sector is not only future-proofing itself but also setting new standards for excellence in technology worldwide.
