The Indian IT-BPM sector is poised for a significant resurgence in fresher hiring, with projections indicating an increase from 1.75 lakh in FY26 to up to 2.1 lakh by FY27. However, this recovery signals a structural transformation in the skills that employers are seeking from new graduates.

Traditional entry-level roles focused on coding and business process outsourcing are giving way to specialized positions centered around artificial intelligence (AI), machine learning (ML), data engineering, and cybersecurity. IT services companies continue to dominate fresher recruitment, expected to account for about 60% of hires, with a growing emphasis on AI-related capabilities.

Global Capability Centers (GCCs) are emerging as the fastest-growing channel for fresher hiring, accounting for approximately 28% of new recruits. These centers are expanding their reach into Tier II and III cities, such as Coimbatore, Jaipur, Kochi, Indore, Ahmedabad, and Visakhapatnam, recognizing the potential of local talent pools. In contrast, pure-play BPOs are witnessing a decline in fresh hiring as the industry shifts away from routine tasks towards more complex and specialized roles.

This pivot reflects a broader industry trend where the talent demand hierarchy is being rewired. Employers seek graduates who are not only proficient with AI tools but can also validate AI outputs and apply these technologies to solve business challenges effectively. The conventional bulk hiring model, followed by extended training periods, is becoming obsolete. Instead, firms are prioritizing AI-native freshers with ready-to-deploy skills.

Salary structures are changing in tandem with these evolving demands. Freshers equipped with AI-allied skills command significantly higher remuneration, ranging from Rs 12 to 22 lakh, especially for specialized roles in AI, data engineering, cybersecurity, and enterprise technology offered by Tier-1 IT services firms. This represents a marked departure from the stagnant Rs 3-4 lakh salary range typical of traditional ITeS entry-level positions.

Geographically, while metropolitan cities like Bengaluru, Delhi-NCR, Hyderabad, Chennai, Mumbai, and Pune remain key fresher hiring hubs, Tier II and III cities are growing at a faster rate, underscoring a strategic expansion by IT firms to diversify their talent sourcing beyond established urban centers.

For HR and recruitment professionals, staying ahead in this evolving landscape demands a keen focus on identifying and nurturing AI-native talent, adapting hiring strategies to target specialized skill sets, and recognizing the growing importance of wider geographical talent pools. This transformation not only elevates the quality of freshers but also aligns talent acquisition with the sector’s move towards high-value, technology-driven services.

Source: The Economic Times