Tech Mahindra Puts Freshers’ Onboarding on Hold as IT Hiring Slows

More than a thousand engineering graduates from Tech Mahindra's 2025 class have had their onboarding delays extended. This action is indicative of a more widespread trend of reduced hiring activity in India's IT services sector as businesses strive to safeguard their profit margins.

The IT services company based in Pune has been recruiting on campus for almost a year, but many of the chosen candidates still haven't received official offer letters. Delays are occurring because the company is cutting back on employing new employees in FY26. This step is taken in order to improve operational profitability and utilisation rates in the face of a difficult macroeconomic climate.

Tech Mahindra Delays Hiring For More Than an Year

Participants in the campus recruitment stated that the selection process started in the first quarter of 2025. In January, students were given aptitude tests, and in February, they were interviewed for technical and HR positions at Tech Mahindra's office in Pune. March saw the announcement of the final roster of candidates. Candidates who have made it through all the rounds report that they have not heard anything official about an offer or a start date for their employment.

According to one engineering college alumnus who spoke with a news organisation, the wait has continued for almost a year after selection. According to several impacted grads, they were prepared for delays at first as placement cells had informed them that IT companies were dragging their feet on onboarding. By the year 2025, though, many of their colleagues who had been hired by competing companies had already signed on.

Tech Mahindra Shifting Hiring Strategies         

Tech Mahindra's hiring freeze is in line with CEO Mohit Joshi's larger operating plan. As part of the company's turnaround plan until FY27, Joshi has placed a particular focus on enhancing productivity and profits. Joshi announced the company's intention to hire fewer new employees in FY26 during the third-quarter earnings call that took place earlier this year. The previous year, the firm hired around 6,000 people. He said that the company's current priorities include making better use of current staff and redeploying workers who have been released from fixed-price projects.

During the earnings call, Joshi mentioned that the company's new recruit count was lower than last year due to the demand climate. An official from Tech Mahindra responded to questions by saying that the company still releases offer letters in stages according to business need.

The spokesman went on to say that the IT industry as a whole has seen slower onboarding rates due to lower-than-expected demand for recent graduates. This incident exemplifies a broader pattern in the IT outsourcing industry in India. Tech companies are making adjustments to their recruiting strategies in response to poor global demand and the rapid changes brought about by the use of artificial intelligence.