Infosys Ltd. plans to hire 20,000 fresh graduates in fiscal year 2027, signalling that artificial intelligence (AI) is yet to significantly dent entry-level hiring at the country's second-largest IT services company. Speaking during the company's June quarter earnings call, Chief Executive Officer and Managing Director Salil Parekh said Infosys remains committed to campus recruitment even as AI continues to improve productivity across the business.
"We recruited 20,000 college graduates last year. This year we have a plan to recruit 20,000 college graduates. We have already hired over 4,000 in the first quarter," Parekh said.
He acknowledged that AI has been driving productivity gains over the past several quarters, resulting in improved revenue productivity. However, he stressed that the company continues to invest in talent while balancing productivity improvements with pricing dynamics in the market.
"We have seen a good improvement in productivity over the previous several quarters. There is a benefit from that productivity coming through, but we are continuing with our hiring plans," Parekh added.
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Infosys also said its AI strategy is delivering results, with AI-led services witnessing sustained double-digit growth over several quarters. Parekh said AI services contributed 8.2% of the company's total revenue in the June quarter, reflecting growing client demand for generative AI and related digital transformation offerings.
Management also said the company's AI strategy is well established and that CEO-designate Ashiss Kumar Dash has been closely involved in shaping and executing the roadmap.
On the broader demand environment, management said macroeconomic conditions may improve, though not to the extent previously anticipated.
Despite the cautious outlook, the company said demand for AI-led services remains healthy and continues to be a key growth driver.
Attrition Edges Up; Headcount Declines
Infosys reported last twelve months (LTM) voluntary attrition of 13% during the June quarter, compared with 12.6% in the previous quarter. However, attrition improved from 14.4% in the year-ago period.
The company's employee headcount declined by 532 during the quarter to around 3.28 lakh employees.
The commentary comes at a time when concerns have grown over the impact of AI on entry-level technology jobs. Infosys' hiring plans suggest that while AI is improving operational efficiency and employee productivity, the company continues to see value in investing in fresh engineering talent alongside its expanding AI capabilities.
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