IT Services Hiring Remains Stagnant, No Q2 Recovery Expected: Quess Corp

IT hiring in India has been flat for 6-7 quarters, with no expected recovery in Q2. Demand for tech talents comes from global capability centers and non-IT companies, with skills in AI, cloud, and cybersecurity in high demand. Quess Corp, a staffing firm, has reported a 4% increase in consolidated profit after tax, driven by growth in the professional staffing segment. The company's general staffing and overseas business remained flat, while digital platform business revenue declined.

IT hiring in India has been relatively flat for the past six to seven quarters, with no expected recovery in Q2 2025. The demand for tech talent is primarily driven by global capability centers and non-IT companies, with a strong focus on skills in AI, cloud computing, and cybersecurity. Quess Corp, a leading staffing firm, reported a 4% increase in consolidated profit after tax, largely driven by growth in the professional staffing segment. Despite the overall slowdown in IT hiring, certain sectors are experiencing a surge in demand for specialized tech roles.

Global tech giants like Meta, Amazon, Apple, Microsoft, Netflix, and Google (collectively known as FAAMNG) have been ramping up hiring in India. According to staffing firm Xpheno [1], the collective employee base of these companies grew by 16% in India over the past year, adding over 28,000 net new jobs. This growth is particularly driven by the demand for AI and cloud computing skills. Despite global redundancies, these companies are expanding in India through their Global Capability Centers (GCCs), focusing on AI tools, cloud platforms, and digital products [1].

In contrast, India's top IT services companies, including TCS, Infosys, and Wipro, are facing a hiring slowdown. After registering 22% headcount growth in 2022, the sector saw contractions of 0.2% and 3.1% in 2023 and 2024 respectively. By June 2025, their combined workforce showed just 1.3% annual growth, touching 1.62 million [1]. The market is shifting towards AI, cybersecurity, and cloud technologies, making traditional IT roles less relevant. Companies are under pressure to retain only top-performing, future-ready teams [1].

Capgemini India is set to hire between 40,000 and 45,000 employees in 2025, with a focus on building an "AI-ready workforce" [2]. The company aims to train new hires in AI from the beginning, ensuring they are well-equipped to work on projects aligned with the rapidly evolving AI landscape. Capgemini's acquisition of WNS is also expected to enhance its capabilities in intelligent operations and business process services, with limited job layoffs anticipated [2].

Quess Corp's professional staffing segment experienced growth, while its general staffing and overseas business remained flat. The company's digital platform business revenue declined, indicating a shift in demand towards specialized tech roles [1]. The overall hiring market in India remains challenging, but the demand for AI, cloud, and cybersecurity skills continues to grow.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/hiring-growth-in-india-global-tech-firms-ramps-up-recruitment-domestic-majors-slow-down-ai-cloud-drive-demand-shift-say-experts/articleshow/123072722.cms
[2] https://www.financialexpress.com/life/technology-capgemini-india-to-hire-up-to-45000-in-2025-to-prioritise-ai-ready-workforce-3934551/