As AI reshapes IT jobs, Infosys bets on 20,000 fresh graduates

Infosys will recruit 20,000 college graduates in the current financial year, signalling continued investment in fresh talent even as the broader Indian IT industry turns cautious on hiring amid growing adoption of artificial intelligence (AI).

Speaking after the company's June-quarter earnings, CEO and MD Salil Parekh said Infosys remains committed to campus hiring. "We are recruiting, and plan to recruit 20,000 college graduates this year," he said, offering a positive outlook on the company's talent strategy at a time when industry-wide hiring has slowed.

The hiring announcement comes against the backdrop of growing concerns that AI-driven automation is reshaping the traditional employment model of India's $280-billion IT services industry.

Rating agency Crisil recently warned that net hiring across the sector is likely to remain subdued over the next two years as companies focus on automation, improve employee utilisation and selectively recruit AI-skilled professionals instead of expanding headcount aggressively.

Continues to scout for acquisitions

Infosys also reiterated that it remains open to acquisitions to strengthen its capabilities and geographic presence.

"We have a good pipeline and continue to look at acquisitions," Parekh said. He added that the company is interested in expanding in select geographies, industry verticals such as healthcare, and service-line focused capabilities. "We will continue with acquisitions," he said.

Separately, Infosys announced the appointment of Ashiss Kumar Dash as CEO Designate. Dash will take over as the company's CEO and Managing Director from April 1, 2027, succeeding Salil Parekh upon the completion of his second term, which will span more than nine years.

Guidance trimmed after Q1

Infosys narrowed the upper end of its FY27 revenue growth guidance to 1.5%-3% in constant currency terms from the earlier 1.5%-3.5%, broadly in line with market expectations. The company, however, maintained its operating margin guidance of 20%-22%.

Parekh attributed the company's modest 1% revenue growth during the quarter to a one-time impact arising from a client decision.

For the June quarter, Infosys reported US dollar revenue of $5.08 billion, broadly in line with expectations, while sequential revenue growth stood at 0.8%.

Industry balances AI and hiring

Infosys' hiring plans stand out at a time when the IT industry is navigating a structural shift. While companies including TCS, HCLTech, LTIMindtree and Tech Mahindra have reported earnings that reassured investors, industry experts believe AI is changing the long-standing growth model of hiring more engineers to deliver more work.

A recent Naukri World AI Day Report highlighted the rapid rise in demand for AI skills, with AI-related capabilities now appearing in 15.4% of technology job descriptions, up from just 0.9% in 2020. AI adoption is also spreading beyond technology roles, with mentions in non-tech job descriptions increasing nearly six-fold over the same period.

Infosys' decision to continue large-scale campus hiring suggests that while AI is reshaping skill requirements, the company still sees significant demand for fresh engineering talent alongside investments in emerging technologies.