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IT hiring decouples from revenue momentum in Q2
Financial Express Bengaluru
|October 21, 2025
Automation and AI reshape tech workforce scaling
INDIA'S TOP IT COMPANIES are showing early signs of decoupling headcount growth from revenue momentum — a shift long anticipated as automation, cloud delivery,and AI-based productivity gains begin to reshape traditional manpower-heavy models.
The September quarter (Q2 FY26) was the clearest sign yet that hiring is no longer tracking topline growth, as firms start optimising workforce deployment for an AI-driven era.
“These are early signs,’ said RP Yadav, founder and chairmanat Genius Consultants.“As AI and automation deployment matures and scales, it will start showing up in the revenues clearer, but that is still some time away.”
He added that earlier, IT companies would develop a solution and then deploy people to execute and maintain it. As automation seeps deeper into the execution layer, he noted, the delivery model is shifting “from headcount-based to outcome-based.”
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