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AI Is Breaking India's Old IT Hiring Model. What Does It Mean for Freshers?

Nasscom's Rajesh Nambiar says AI is letting IT and BPM firms grow revenue without growing headcount at the same rate, while campus hiring stays weak.

Aiexl. · 03 October 2026 · 1 min read

AI Is Breaking India's Old IT Hiring Model. What Does It Mean for Freshers?

Nasscom President Rajesh Nambiar told The Economic Times that AI is allowing Indian IT and BPM companies to increase productivity and revenue without expanding headcount at the same rate. For close to two decades, he said, the industry tried to break this "linear" link between revenue and headcount, and never quite managed it.

Large IT and BPM companies have also reduced campus hiring over the past three years, and Nambiar indicated this may not change significantly while the industry is in the middle of its transition toward AI.

This does not mean technology hiring has stopped. It suggests that the traditional model, in which large IT-services companies absorbed huge numbers of graduates every year, may be changing.

For students, relying only on traditional campus-placement preparation may therefore become less sufficient.

Takeaway

Build stronger projects, pursue practical experience and internships, develop specialised skills and create visible evidence of capability.

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