Infosys Bets Big on Graduate Recruitment While Competitors Cut Jobs

While TCS and HCLTech reduce workforce, Infosys plans to hire 20,000 graduates in 2025, focusing on AI capabilities to drive future growth.

Infosys plans to hire approximately 20,000 fresh graduates in 2025, reaffirming its commitment to talent expansion amid a competitive IT landscape. This hiring plan contrasts with Tata Consultancy Services (TCS), which is cutting over 12,000 jobs due to AI-driven shifts, and HCLTech has also indicated potential workforce reductions.

Why It Matters Now

The hiring announcement signals confidence in AI-driven growth. While other firms view automation as a means of job replacement, Infosys sees it as a means of enhancing productivity. CEO Salil Parekh confirmed that Infosys recruited over 17,000 people (gross hiring) in the first quarter of 2025.

“We recruited over 17,000 people in Q1, and our utilisation is running at a good level. All of the people joining us are getting trained and deployed on projects,” Salil Parekh said in a CNBC-TV18 interview.

This strategy positions Infosys differently from rivals facing workforce restructuring pressures.

Strategic Advantage Through AI Investment

Infosys has trained approximately 275,000 employees in AI and digital technologies. The company reports productivity improvements ranging from 5% to 15% in software development through AI integration, with its Finacle banking platform showing up to 20% efficiency gains. The focus on fresh talent aligns with growing client demand for AI solutions.

Global businesses need digital transformation partners who understand modern technologies.

What Business Leaders Should Know

This hiring spree creates opportunities for Indian companies. Fresh graduates trained in AI technologies will enter the market with cutting-edge skills. Companies can leverage this talent pool for their own digital initiatives.

Key skill areas seeing demand include:

  • Python and Java development
  • Cloud platforms like AWS and Azure
  • AI and machine learning basics
  • Data analytics and cybersecurity

Infosys Chairman Nandan Nilekani said, “As enterprises look at applying AI to every aspect of the business, some longstanding challenges will become imperative and self-evident to firms. While embracing AI will bring a goldmine of opportunities, it will not be entirely without some foreseeable risks.”

Market Impact in India

The decision counters negative job market sentiment. While layoffs dominate headlines, Infosys demonstrates that growth-focused companies still invest in talent. This could inspire other firms to announce fresher-friendly hiring plans.

Campus placements remain crucial for IT workforce planning. Despite rising automation, there remains a strong demand for skilled fresh graduates. Companies seek to balance experienced professionals with young tech minds.

Competitive Positioning

Infosys is adopting a philosophy that AI enhances human capabilities rather than replacing them, differing from competitors who are reducing their workforce to cut costs. The company believes investing in new skills and AI literacy future-proofs operations.

“We’ve been deeply focused on AI transformation, whether it’s building AI agents or developing smaller language models internally,” Parekh explained.

Nilekani added context about their AI development: “Our AI work spans a wide spectrum of priority areas like process improvement, engineering, customer service, cybersecurity, and employee productivity. We have built four small language models for banking, IT operations, cyber and enterprises broadly.”

Risks and Considerations

Regulatory challenges across regions need strategic planning. Early enterprise AI adoption reveals potential roadblocks ahead. Companies must prepare for varying compliance requirements.

However, Infosys appears confident in managing these challenges. The company’s internal data suggests AI investments will generate positive returns through improved efficiency and client satisfaction.

This hiring announcement represents more than numbers. It signals a transformative approach to talent acquisition in a rapidly evolving industry. By expanding while others contract, Infosys positions itself as an AI-first service provider ready for future market demands.

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