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India’s top IT firms, Tata Consultancy Services (TCS) and Infosys, are facing a sharp drop in the number of young employees, signaling deeper changes in the industry’s workforce dynamics.
According to a Mint report, new data from their annual reports shows a steep reduction in the percentage of employees under the age of 30.
At TCS, only 47.7% of its Indian workforce fell under this age group at the end of FY25—down from 59% in FY22. This marks a loss of around 44,542 younger employees over three years.
Infosys experienced a similar decline, with just 52% of its 323,578 employees aged 30 or below by FY25, compared to 60% in FY22—a net reduction of roughly 17,609.
One of the key drivers behind this shift is the growing use of automation, which is increasingly replacing entry-level roles, especially in customer support. These roles traditionally formed the bulk of fresher hiring, but with tools now handling many of these tasks, the demand for junior employees has decreased.
In response, many young professionals are gravitating toward startups, product-based tech firms, or global tech centres like those of Google and Microsoft. These alternatives offer not only higher salaries but also faster career growth and more engaging roles, experts suggest.
Another contributing factor is the waning relevance of the traditional pyramid staffing model. TCS, for example, saw its revenue grow just 3.78% in FY25 to $30.18 billion—its slowest growth in four years. Infosys posted a similarly muted 3.85% rise, with revenues reaching $19.28 billion.
Economic uncertainty is also dampening demand.
With global clients cutting back on IT spending, hiring has slowed significantly.
A Mumbai-based analyst explained to The Wire, “IT services providers hire junior employees, most of whom fall under 30, when there is high demand for tech services. This was the case in FY22 when plenty of freshers were added. Now, because growth has been a little sluggish, hiring has been low, and which is why we see fewer young people.”
To illustrate the slowdown, TCS and Infosys had jointly hired more than 157,000 people in FY22, but this dropped dramatically to 12,771 in FY25. This trend is also reflected in fewer campus placements reported by engineering colleges.
Final-year students, who earlier received early job offers from IT service majors, are now turning to software product companies, fintech startups, or opting for higher studies abroad.
The ageing workforce challenge is even more acute in overseas markets. In North America, which brings in more than 50% of TCS’s revenue, over 20% of its employees are aged above 50. In Europe, the figure climbs to 28%.
Additionally, Infosys received 4.46 million job applications in FY25, a 24% decrease from FY22—further reflecting declining enthusiasm among young talent for roles in traditional IT services.
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