August 3, 2025

In a contrasting trend, while Indian IT services giants are downsizing their workforce, major global technology companies are actively hiring in India. This growth is particularly seen in firms under the FAAMNG umbrella, which includes Facebook's parent company Meta, Amazon, Apple, Microsoft, Netflix, and Google. According to data from the staffing firm Xpheno, these companies have seen a 16% increase in their employee count over the past year, indicating a strong demand for tech talent in the country. The report from Xpheno highlights that the collective headcount for these global giants across their entities in India now exceeds 208,000, with more than 28,000 net employee additions reported in the last year. The hiring pace for this sector has slightly increased from 15% in the previous year. Kamal Karanth, cofounder of Xpheno, noted that the healthy hiring rate may be influenced by the emerging opportunities in artificial intelligence (AI). Currently, there are about 4,500 active job openings in these tech companies, despite significant layoffs occurring in their home countries. The trend of job cuts has resulted in approximately 100,000 employees being laid off on a global scale. The landscape of tech staffing has evolved notably since the Covid pandemic. In 2022, the FAAMNG cohort experienced a remarkable hiring surge, with net additions up 35% year-on-year. However, this growth has decelerated, with only 6% seen in 2023. In contrast, the six largest Indian IT services firms reported a steep increase in headcount of 22% in 2022, followed by slight declines of 0.2% and 3.1% in 2023 and 2024, respectively. As per the latest figures, their combined headcount has reached 1,625,646, a modest growth of 1.3% year-on-year as of June 2025. The beleaguered Tata Consultancy Service (TCS) recently announced the layoff of 12,000 employees, citing skills mismatch in project assignments. While global tech companies have also faced layoffs, the impact in India has thus far been less severe when compared to other regions. Neeti Sharma, CEO of IT staffing firm TeamLease Digital, remarked that while some effects are felt in India, they have not reached the volumes seen globally. AI, cloud, and cybersecurity skills are in high demand, leading to a shift in hiring focus. As companies refine their workforce, recruitment is becoming increasingly selective, favoring candidates with specialized skills over traditional support roles. Sharma pointed out, "A few older roles will gradually become redundant. However, newer roles are being defined. This transition is tough now, but it’s needed to stay relevant." The pressure on employees to upskill is mounting, especially in critical areas such as AI and cloud computing, as firms aim to retain top talent while optimizing team structures. A report by Quess IT Staffing noted a slight dip in hiring by large tech firms in India, down 3-6% in the fourth quarter of FY2025. However, the first quarter of FY2026 saw a resurgence with hiring up by approximately 8-10%. The uptick in hiring points towards a robust performance by global tech firms in India, especially through Global Capability Centres (GCCs). Kapil Joshi, CEO of Quess IT Staffing, explained that these centers are increasingly responsible for high-end projects, including the development of AI tools and advanced cloud infrastructures. Yet, companies are faced with the dual challenge of managing costs while maintaining their commitment to innovation. Josh highlighted that organizations need to expedite training efforts to bridge talent gaps and compete for the best candidates in a tight labor market. In conclusion, despite ongoing structural challenges in the Indian IT sector, the resilience and demand from big tech companies for skilled talent in India appear robust, offering opportunities and shaping the future of employment in the region.

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Tags: It services, Big tech, India, Hiring, Layoffs, Ai, Cloud,