India’s second-largest IT services exporter Infosys is doubling down on talent and artificial intelligence (AI) as it prepares for the next wave of technology transformation. Speaking on the sidelines of the World Economic Forum (WEF) annual meeting in Davos, CEO Salil Parekh said the company plans to hire 20,000 college graduates in FY27, signalling confidence in future demand even as parts of traditional IT work come under pressure.
The hiring push comes as Infosys pivots its services portfolio towards fast-growing AI-led opportunities, while global clients gradually move from experimentation to large-scale deployment of AI solutions.
Credits: Moneycontrol
A Strong Hiring Pipeline Despite Industry Uncertainty
Infosys’ hiring plans come at a time when the broader IT services industry has been cautious on headcount amid global macro uncertainty. Yet, the company appears to be taking a contrarian — and long-term — view.
“From April 1, 2026 to March 31, 2027, Infosys will hire another 20,000 college graduates; it’s already in our plan,” Parekh told Moneycontrol at Davos, where nearly 3,000 global leaders are gathering between January 19 and 23.
The company’s momentum is already visible. In the first nine months of FY26, Infosys recruited 18,000 college graduates, while net headcount increased by over 5,000 employees in Q3FY26 alone. By the end of FY26, total fresher hiring is expected to touch 20,000, matching the FY27 target a year in advance.
This steady intake reflects Infosys’ strategy of building a strong pipeline of young, digitally native talent for its next phase of growth.
AI Creates More Growth Than Compression
While AI is disrupting traditional IT services, Parekh believes the net impact is positive for Infosys.
“We see some places where there’s compression and some places where there’s growth. And we see the growth a little bit more than what we see on the compression,” he said.
According to the CEO, AI is opening up new service lines across software development, customer service, and legacy modernisation. The rise of AI agents and multiple foundation models is driving demand for entirely new forms of engineering and transformation work.
For instance, in software development, AI agents are being built on top of foundation models to accelerate coding and testing. In customer service, AI-driven agents are increasingly handling complex interactions. Meanwhile, enterprises are using AI to modernise decades-old legacy applications — a massive opportunity for large system integrators like Infosys.
From AI Pilots to Production at Scale
One of the most important signals of AI maturity is the shift from proof-of-concept (PoC) projects to full-scale production deployments — and Infosys is already seeing this transition.
“In financial services, out of our 25 largest clients, in 15 we are the AI partner of choice,” Parekh said. “These are real projects. This is not proof of concept.”
These AI deployments are already running at scale in banks, helping automate operations, improve customer experience, and modernise technology stacks. This shift is crucial, as large-scale projects generate sustained revenue streams rather than one-off experimentation fees.
New Pricing Models Still in Early Days
Despite AI’s transformative potential, its impact on pricing is still evolving. Parekh acknowledged that while AI can have a deflationary effect on traditional services, pricing models for AI-led delivery are still in early stages.
Infosys has begun experimenting with hybrid pricing models, where work is delivered by a combination of human teams and AI agents. However, such projects currently represent only a small portion of overall revenue.
“It’s still an early time period,” Parekh said, adding that more standardised pricing frameworks could emerge over the next few quarters and years as AI delivery becomes mainstream.
Higher Fresher Salaries Signal AI-First Strategy
Infosys’ AI ambition is also reflected in its compensation strategy. In December, Moneycontrol reported that the company raised entry-level salaries for freshers, with packages going up to ₹21 lakh per annum for specialised technology roles.
This move underscores Infosys’ intent to attract top digital talent and strengthen its AI-first capabilities, even as competition for skilled engineers intensifies.
Credits: Hindustan Times
Cautious Optimism on 2026 Tech Budgets
Looking ahead, Parekh struck a cautiously optimistic note on client technology spending, particularly in the US.
Large American companies, he said, are benefiting from stronger GDP growth, which could support technology investment decisions. Europe, however, may take longer to show similar momentum.
For Infosys, the message from Davos is clear: while traditional IT work may face pressure, AI-led transformation is opening up a much larger opportunity set — and the company is hiring, investing, and repositioning itself to capture it.
