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IT Sector News: Companies Prioritize Experienced Talent Over Entry-Level Hires

by Market Surface
February 6, 2026
in Economy
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IT Sector News: Companies Prioritize Experienced Talent Over Entry-Level Hires
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IT Hiring Trends: Mid-Level Roles Rise as Fresher Jobs Decline

Companies in the IT sector are changing how they hire. There is a growing focus on experience and specialized skills as new technology changes the way work is done.

Market experts say demand for entry-level jobs in India is falling. Meanwhile, hiring for mid- to senior-level roles is rising. Instead of hiring large numbers of people, companies are now prioritizing high-level skills. This shift is happening because of Artificial Intelligence (AI), the growth of Global Capability Centres (GCCs), and the expansion of data centers.

The Slowdown in Entry-Level Hiring

Automation is now handling many routine tasks that were once performed by new graduates. This has made entry-level roles less stable.

Neha Sharma, CEO of TeamLease Digital, notes that fresher hiring has dropped sharply. In 2021, freshers made up 70–80% of IT hiring. By 2025, that number has fallen to around 25%.

Data from Quess Corp shows a similar trend. A few years ago, companies hired freshers in bulk. By 2024, they shifted toward automation. In 2025, hiring has been limited to small groups with very specific, “niche” skills.

Why Mid-Level Roles are Dominating

Mid-level positions now make up the largest part of the IT job market. Kapil Joshi, CEO of IT Staffing at Quess Corp, says that nearly 45% of IT demand is for mid-level roles.

“AI-led automation and the growth of GCCs require high-skill experts rather than a large volume of entry-level staff,” Joshi explained. In fact, about 50% of all IT hiring in 2025 took place in GCCs, which focus on complex and high-value work.

Higher Pay for Experienced Talent

Because experienced workers are hard to find, companies are paying more for them. Joshi mentioned that for every ten senior roles available, there are only six to eight qualified candidates. To attract this talent, companies are willing to pay a 30–40% salary premium.

How AI is Changing the Industry

Industry veteran Ramesh Damani says this period of change feels different from the past. With AI, a small number of employees can produce a massive amount of work. This means roles that used to hire thousands of graduates are shrinking. However, he believes the growth of GCCs in India will create new types of jobs, keeping the overall economy healthy.

Shrikanth Velamakanni, CEO of Fractal Analytics, warns that AI will reduce the number of people needed for certain tasks. While large IT firms still handle complex systems that AI cannot fully manage yet, he believes companies must rethink their long-term strategies to survive the AI age.

The Growing Skills Gap

India’s education system is struggling to keep up with these changes. Neha Sharma points out that it is difficult to find professors who can teach the latest AI skills because the technology moves so fast.

While top schools like the IITs are investing in AI, experts say the wider workforce needs to re-skill quickly. Sharma warns that India has a large population, but without the right training, it may miss out on these new opportunities.

Summary

The IT sector is not shrinking; it is evolving. While entry-level roles are declining, the demand for experienced, high-skill professionals is stronger than ever as the industry moves toward more complex work.

Also Read : No Full Berth, No Full Fare: New Refund Proposal for Indian Railway RAC Tickets

Tags: AI automation jobsartificial intelligence impactdata center jobsexperienced talent demandfresher hiring declineGCC hiring IndiaIndia IT sectorIT career shiftIT hiring trendsIT salary trendsmid-level IT jobsniche tech skillsre-skilling for AItech skill gap
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