Why fresher hiring in Indian IT is muted despite bigger talent pool from H1B curbs

Although the H1B visa used to provide access to the American dream, it has now excluded many recent graduates who wanted to come to the US for employment and further education. This path is becoming more and more unfeasible due to growing expenses and dwindling corporate funding opportunities.

According to Aditya Narayan Mishra, MD-CEO of CIEL HR, “Indian IT firms will have a larger pool of talent to choose from as that option closes.” IT businesses will continue to hire on campuses this year, but it is unclear if they will turn those offers into hires given the unpredictability of western Markets.

The broader prediction is that the IT sector will continue to face challenges and macroeconomic concerns when it comes to hiring new employees. Engineers make up the majority of the university hires. Campus hiring, which typically starts in June or July, has already decreased this year as more recruiters are moving to the August or September timeframe. According to Aon India‘s 14th Campus Study 2025-26, technology platforms, product companies, and engineering/manufacturing service organizations account for just 10% of total campus hiring at the end of the year. The study also found that while IITs and Tier 1 colleges remain a primary focus, Tier 2 and Tier 3 colleges are struggling with reduced recruitment activity.

“Hiring on campus will be done with caution and conservatism. The volume and velocity of fresher intakes this year are also anticipated to be impacted by the sector’s austerity measures to preserve profitability. While entry-level hiring remains low, lateral hiring for niche qualifications and specialist talent continues, primarily driven by attrition-linked replacement,” says Kamal Karanth, co-founder of Xpheno, a specialist staffing firm.

IT services firms, which have long been seen as the foundation of the IT industry’s talent acquisition process, have historically taken the lead in campus hiring. The slowdown in hiring for IT services cannot be made up for by the combined intake from other cohorts, such as software product companies, startups, and GCCs (global capability centers).

Considering that India generates over 800,000 engineers annually, this discrepancy is startling. According to Karanth, “the sector’s intake volumes remain a concern.” For over three years, there has been little demand for entry-level talent. Compared to 120,000 in FY2025, 100,000 new hires were hired for technology positions in FY2024. This year is to be similar, with around 150,000 offers made to freshers.

“Persistent headwinds and margin pressures in key sectors like IT have forced employers to shrink their budgets for freshers,” says Karanth. The current active demand for entry-level talent across sectors in India is under 50,000, with only a third of that coming from the tech sector.

The recent announcement by the US Government that new H-1B visa applications will now be subject to a one-time $100,000 cost is expected to have a substantial impact on the employment prospects of Indians, who make up the newest cohort of international students studying there.