India's IT and Business Process Management (IT-BPM) sector is preparing for a recovery in fresher hiring, but the skills employers expect from graduates are changing rapidly as artificial intelligence reshapes the workplace.

According to The Economic Times, fresher hiring in the sector is projected to reach up to 2.1 lakh in FY27, compared with an estimated 1.75 lakh in FY26. This remains well below the approximately four lakh freshers hired in FY22.

The latest outlook, based on research by technology consulting and talent advisory firm HAN Digital, suggests that companies are moving away from traditional bulk recruitment towards candidates with specialised technical and AI-related capabilities.

AI and Specialised Technology Skills Take Priority

As AI tools automate parts of routine coding, testing, and business process work, employers increasingly want graduates who can work alongside AI systems rather than rely entirely on traditional manual processes.

The skills gaining importance include:

  • Artificial intelligence and machine learning: Building, deploying, and evaluating AI-powered solutions.

  • Data engineering: Managing data pipelines and preparing reliable data for analytics and AI systems.

  • Cybersecurity: Protecting applications, infrastructure, and sensitive information.

  • AI testing and model operations: Validating AI outputs, monitoring performance, and supporting reliable deployments.

  • Enterprise technology: Integrating digital tools into business operations and existing systems.

Nasscom has also highlighted the shift towards AI capabilities and new technology-related roles as companies adapt their workforce requirements.

Fresher Hiring Could Reach 2.1 Lakh in FY27

The projected recovery suggests that opportunities are returning for graduates, although recruitment is becoming more selective.

According to HAN Digital's outlook, IT services companies are expected to account for approximately 60% of fresher hiring. Global capability centres (GCCs), which manage technology and business operations for multinational companies, are also becoming an important source of entry-level opportunities.

GCCs are projected to account for 28% of fresher hiring, with recruitment expanding beyond established metropolitan technology hubs.

However, the overall recovery does not mean every traditional entry-level role will return. Companies are increasingly looking for graduates who can contribute to specialised projects and work productively with modern technology.

AI Skills Could Lead to Higher Starting Salaries

The changing demand for skills is also affecting compensation.

The Economic Times report, citing HAN Digital's outlook, indicates that selected specialised entry-level roles at leading IT services companies may offer salaries of ₹12 lakh to ₹22 lakh annually.

By comparison, conventional entry-level salaries across parts of the IT-enabled services sector have remained around ₹3 lakh to ₹4 lakh annually.

These higher packages apply to selected specialised positions, not all fresher jobs. They illustrate how employers are increasingly placing a premium on specific technical capabilities rather than graduate headcount alone.

Hiring Is Expanding Beyond Major Technology Cities

Bengaluru remains India's leading destination for fresher onboarding, followed by Delhi-NCR, Hyderabad, Chennai, Mumbai, and Pune.

At the same time, Tier II and Tier III cities are gaining attention as companies expand their talent searches and establish operations in new locations.

Cities such as Coimbatore, Jaipur, Kochi, Indore, Ahmedabad, and Visakhapatnam are attracting opportunities through local GCCs and IT services operations.

This expansion could give graduates more options outside traditional technology hubs, although opportunities will depend on local employer demand and the availability of relevant skills.

What Should Freshers Do to Stay Competitive?

For students and recent graduates, the changing hiring landscape makes practical experience and continuous learning increasingly important.

1. Learn AI tools: Understand how AI assistants can support coding, research, data analysis, and everyday business tasks.

2. Build technical foundations: Strengthen programming, databases, problem-solving, and software development fundamentals.

3. Develop a specialisation: Explore areas such as AI, data engineering, cybersecurity, cloud computing, or enterprise technology.

4. Create practical projects: Build a portfolio that demonstrates how you apply technology to solve real problems.

5. Learn to validate AI outputs: Employers need professionals who can identify errors, assess reliability, and take responsibility for the final result.

6. Improve communication skills: Technical knowledge is more valuable when professionals can explain their work, collaborate with teams, and understand business requirements.