India’s largest technology employers, Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro, have entered a phase of workforce transformation defined not by expansion, but by reinvention.
The second quarter of FY2026 revealed a decisive industry pivot, hiring has slowed, attrition has stabilised, and artificial intelligence has become the core driver of workforce strategy.
Wipro reported an attrition rate of 14.9% for the September quarter, HCL 12.6%, Infosys 14.3%, and TCS 13.3%.
TCS reported a record 275,000 participants in its ‘Ideate and Build with AI’ hackathon, an unprecedented internal reskilling initiative aimed at embedding AI literacy into every function.
However, its headcount dropped to 593,314 from 613,069 during the previous quarter, a decrease of about 3%.
TCS has come under intense scrutiny following allegations from employee unions that the company carried out large-scale layoffs through coercion and in violation of labour laws.
Responding to queries from AIM, TCS denied the claims, stating that the allegations were “incorrect and misleading” and that those affected had been provided due care and severance in line with individual circumstances.
However, it hired about 18,500 people in July-September 2025, employee costs rose to ₹38,606 crore, underscoring continued investment in talent even as hiring levels moderated.
The company executives described this as a shift from “scale hiring to AI-driven empowerment,” where productivity gains now substitute for headcount growth.
Infosys, with a workforce of roughly 320,000, added 8,203 employees in the quarter, its first notable net addition in several quarters.
CEO Salil Parekh said the company’s AI-first approach, anchored in its Topaz platform, is transforming both service delivery and employee roles.
Infosys’ measured hiring reflects a focus on AI-aligned capabilities and automation-driven productivity rather than volume hiring cycles of the past.
HCLTech reported one of the healthiest workforce metrics among peers.
Its total headcount rose to 226,640 with a net addition of 3,489 employees.
Attrition over the last 12 months declined to 12.6% from 12.9% a year earlier, the lowest among major IT firms.
The company credited this to its AI Force reskilling initiative and stronger career alignment with AI-powered service lines.
Despite higher employee costs, productivity improved, reflecting in a 1.8% year-on-year rise in revenue per employee. HCLTech said its workforce is becoming “progressively specialised” as it integrates AI into mainstream delivery.
Wipro, employing over 2,30,000 people, continued to emphasise reskilling over hiring. Its voluntary attrition rate stood at 14.9%, showing further stabilisation from post-pandemic highs.
CEO Srini Pallia said Wipro’s “AI-first world” talent strategy centres on retraining employees through the Wipro Intelligence platform, which ties AI learning progress directly to project readiness and deployment.
Attrition rates across India’s top four IT companies have stabilised at their lowest levels in nearly five years, ranging between 12.6% and 14.9% in Q2 FY26.
This marks a dramatic reversal from the peak attrition period of FY22-FY23, when rates surged to between 17.4% and 27.7% amid an intense post-pandemic talent war driven by digital transformation demand.
Pre-pandemic levels averaged 11-17%, but the current stabilisation represents a return to sustainable workforce retention after years of volatility.
Neeti Sharma, CEO, TeamLease Digital, said, “Attrition levels stabilising around 12–15% this quarter highlight the IT industry’s evolving maturity in workforce management.”
She said that with global tech spending under pressure, companies are opting for consolidation over expansion, and retention over replacement.
“The focus has clearly shifted to nurturing existing talent pipelines and maintaining cost discipline while preparing for the next cycle of digital growth,” Sharma remarked.
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