India’s tech industry is booming, yet freshers are facing hiring freezes, automation threats, and vanishing entry-level jobs. Discover why the entry-level tech job market is collapsing and what it means for the next generation of engineers.
In a paradox that’s hard to ignore, India’s $300-billion tech industry continues to expand—yet for the country’s aspiring software engineers, the doors of opportunity are rapidly closing. Entry-level tech jobs are vanishing, and the message for freshers is clear: getting hired today takes more than a degree—it takes grit, AI fluency, and sometimes, a Plan B.
“For the last three years, fresher engineers have not got the jobs they’re looking for from services companies,” says Neeti Sharma, CEO at TeamLease Digital.
Big Tech is Turning Its Back on Freshers
Globally, the entry-level tech market is witnessing a historic downturn—and India is no exception. Big tech firms are scaling back fresh hiring. According to the State of Talent report by SignalFire, only 7% of hires at major tech companies today are new graduates. In the U.S., fresh graduate hiring at big tech firms has dropped by over 50% since 2019.
India’s scenario mirrors this trend. Despite promises of hiring one lakh freshers in 2025, actual IT hiring is down 7% year-over-year, and campus hiring has slowed to a crawl.
In light of subdued revenue growth and a gradual recovery in market demand, large-scale recruitment of fresh graduates is expected to remain a significant challenge for Indian IT companies in FY26,” warns Krishna Vij, Vice President of Hiring at TeamLease Digital.
Startups and Internships: No Longer the Safety Net
Startups, which once served as a springboard for fresher talent, are retreating. The same SignalFire report states that less than 6% of hires this year came from elite AI labs—focusing on retaining top-tier, experienced talent.
The traditional intern-to-hire pipeline is drying up too. According to Indeed, internship listings in India have fallen below 2019 levels, despite peaking in 2022. Even top CS grads are now struggling to land jobs six months post-graduation.
“The junior talent pipeline isn’t shrinking; it’s being rerouted entirely,” the SignalFire report notes, suggesting a dramatic shift in how companies approach early-career hiring.
Automation is Quietly Replacing Junior Engineers
One of the biggest disruptors in this ecosystem is automation. Tasks once handled by junior engineers—basic code writing, ticket handling, documentation, testing—are now increasingly performed by AI-powered tools.
Firms like TCS, India’s IT behemoth, hired only 625 employees in Q4 FY25. Although they deny AI’s role in reduced hiring, the numbers tell a different story.
“We are looking for engineers who can do the work of five, equipped with their own AI tools,” said the head of operations at a firm setting up its GCC in Bengaluru.
While this approach may be efficient, it further narrows the lane for freshers. Engineers are now expected to arrive job-ready—with hands-on experience in AI, machine learning, and automated development stacks.
A Generation Dependent on GenAI
The rise of generative AI (GenAI) has changed not just how work is done, but who gets to do it. A Grammarly survey revealed that 61% of Gen Z respondents said they can’t imagine completing work without GenAI—higher than any previous generation.
Ironically, this dependency may be hurting new grads. Many junior developers rely so heavily on AI tools that they can no longer code independently, making them less attractive to employers expecting plug-and-play proficiency.
Layoffs and Location Shifts Paint a Bleak Picture
Big players like Microsoft, IBM, and Salesforce are cutting thousands of jobs to become AI-first companies. Even Infosys, once a key recruiter of fresh graduates, laid off 350 newly onboarded engineers in early 2025, postponing trainee assessments—a telling sign of the sector’s increasing risk aversion.
Meanwhile, jobs are migrating to Tier-2 cities, where labor is cheaper. In Q3 2024, tech job growth in these cities rose 48%, suggesting firms are opting for low-cost talent over inexperienced, high-cost freshers from urban hubs.
The Numbers Show Growth—But Not for Freshers
India’s tech industry added 126,000 net new jobs in FY24–25. However, according to India Briefing, the bulk of these came from Global Capability Centres (GCCs), not traditional IT services firms. These GCCs prefer mid-level talent and AI-savvy engineers, not entry-level applicants.
The Engineering and R&D (ER&D) sector, too, is facing a growing talent crisis. A Bain & Company report states that 73% of ER&D companies in India are already experiencing significant talent gaps, expected to worsen as baby boomers retire faster than freshers can replace them.
The Silver Lining: Adaptation and Mentorship
Despite the gloom, all is not lost. Some companies that continue to hire freshers are investing heavily in mentorship. Graduates are becoming more proactive in upskilling, with many turning to AI, data science, and full-stack development to future-proof their careers.
“The urgency to hire has diminished, and onboarding will be closely aligned with actual project requirements,” says Krishna Vij, highlighting the importance of just-in-time hiring over blanket recruitment.
Moreover, mid-career hiring is seeing a slow but steady rebound, indicating that while the gateway into tech may be narrower, growth within the industry is still possible for those who persevere.
A Career in Crisis or Transformation?
The current collapse of entry-level tech roles is a jarring wake-up call—not just for young job seekers, but for the industry itself. Whether this is a temporary correction following the pandemic hiring surge or a permanent shift remains to be seen.
But one truth is inescapable:
“If you’re trying to enter the tech industry today, you’ll need more than a degree and a dream—you’ll need grit, timing, and a solid Plan B.”
Outlook
India’s tech landscape is at a critical crossroads. Automation, economic caution, and shifting hiring practices are redrawing the map of opportunity. While the collapse of entry-level jobs is disheartening, it also marks a turning point—forcing freshers to rethink their skills, reframe their value, and reskill with urgency.
Because in 2025, entry into tech isn’t promised. It’s earned.
Frequently Asked Questions (FAQs)
- Why are entry-level tech jobs disappearing in India in 2025?
Entry-level tech jobs are vanishing due to a combination of factors, including automation, AI adoption, hiring freezes by major IT firms, and a growing preference for experienced candidates over fresh graduates. Economic caution and over hiring during the pandemic have also contributed to this trend.
- How badly has fresher hiring been affected in India’s IT industry?
Fresher hiring in India has taken a sharp hit, with IT hiring down by 7% year-over-year. Companies like TCS and Infosys have either slowed down onboarding or laid off new recruits. Campus placements have drastically reduced, and startups are also hiring fewer new graduates.
- Are big tech companies still hiring freshers in India?
Very few. Only 7% of hires in Big Tech are now fresh graduates, according to the 2025 SignalFire report. Most companies are focusing on mid-level and AI-skilled talent, leaving limited opportunities for entry-level candidates.
- How has AI impacted entry-level tech jobs in India?
AI has automated many tasks traditionally handled by junior engineers—like code testing, ticket handling, and basic development. As a result, companies now need fewer freshers, and instead, prefer professionals who can manage AI tools efficiently.
- Is the lack of entry-level jobs in India a temporary trend or a long-term shift?
While some of the downturn can be attributed to pandemic-era overhiring, many experts believe this may be a systemic shift. Automation and AI are reshaping job roles, and companies are rethinking how they build talent pipelines.
- Are internships still a good way to get into tech in India?
Internships, once a reliable entry path, are now less secure. According to Indeed, internship listings have fallen below 2019 levels, and even top CS grads are struggling to secure full-time offers after internships.
- What industries or roles are still hiring entry-level tech talent in India?
Some Global Capability Centres (GCCs) and ER&D (Engineering & R&D) companies continue to hire, especially for roles involving AI, data analytics, and full-stack development. However, these roles demand specialized skills and hands-on project experience.
- How can freshers improve their chances of getting hired in 2025?
Freshers should focus on:
- Learning AI/ML and data science tools
- Gaining hands-on coding experience
- Building a strong GitHub or portfolio
- Earning industry-recognized certifications
- Participating in hackathons and open-source projects
- Are Tier-2 cities in India seeing more tech job growth?
Yes, tech job growth in Tier-2 cities increased by 48% in Q3 2024. Companies are moving operations to these cities to reduce costs, although the focus is still more on experienced hires than on freshers.
- Will entry-level tech jobs ever bounce back in India?
It’s too early to say definitively. While the job landscape is transforming, there is hope. Companies investing in mentorship and AI training may eventually create new roles for junior talent. However, freshers must be adaptive, proactive, and AI-savvy to stay competitive.
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