Tech Mahindra delays onboarding of 1,000+ freshers amid hiring slowdown

Tech Mahindra has delayed the onboarding of more than 1,000 engineering graduates from the 2025 batch, reflecting a broader slowdown in hiring across India’s IT services sector as companies tighten recruitment to protect margins.

The Pune-headquartered technology services company has yet to issue formal offer letters to many of the selected candidates nearly a year after their campus recruitment process concluded, affected graduates told Moneycontrol.

The delays come as the company reduces fresher hiring in FY26 while navigating a challenging macroeconomic environment and focusing on improving utilisation rates and operating margins.

Campus hires left waiting

According to candidates who participated in campus recruitment, the selection process began early in 2025.

Students completed aptitude tests in January followed by technical and human resources interviews in February at Tech Mahindra’s Pune office. The final selection list was released in March.

Despite clearing all rounds, many candidates say they have not yet received formal offer letters or joining dates.

One graduate from a Pune engineering college told Moneycontrol the delay has stretched nearly a year since selection.

“It’s been close to a year since we were told we were selected during our final year of college, but we still haven’t received our formal offer letters,” the candidate said.

Several affected graduates said they initially expected delays because placement cells warned students that IT companies were slowing onboarding.

However, many of their peers recruited by other firms had already joined by the end of 2025.

Industry-wide hiring slowdown

The situation highlights a wider trend in India’s technology outsourcing sector, where companies are adjusting hiring plans amid weak global demand and rapid changes driven by artificial intelligence adoption.

Industry observers say IT firms are becoming more cautious about hiring large batches of fresh graduates as clients cut discretionary technology spending.

Delays in onboarding new hires have become increasingly common across the sector.

According to Moneycontrol, Wipro earlier postponed the onboarding of around 250 freshers by nearly eight months, while Tata Consultancy Services delayed onboarding for hundreds of lateral hires in 2025. Infosys had also faced scrutiny in 2024 for postponing the joining of roughly 2,000 fresh graduates.

Company response

In response to queries, a Tech Mahindra spokesperson said the company continues to release offer letters in stages based on business demand.

“We remain committed to honouring our campus hiring commitments,” the spokesperson said.

The spokesperson added that lower-than-expected demand for fresh graduates across the IT industry has resulted in a slower onboarding pace.

Hiring strategy shift

The hiring slowdown aligns with Tech Mahindra’s broader operational strategy under chief executive Mohit Joshi, who has emphasised improving productivity and margins as part of the company’s turnaround plan through FY27.

During the company’s third-quarter earnings call earlier this year, Joshi said the firm planned to recruit fewer freshers in FY26 compared with the roughly 6,000 hired in the previous year.

He noted that the company is focusing on better utilisation of existing employees and redeploying staff freed from fixed-price projects.

“We did have a lower level of fresh hires this year as compared to the previous year because of the demand environment,” Joshi said during the earnings call.

Pressure from employees’ groups

Employee advocacy groups have begun raising concerns about the delays.

Prashant Pandit, secretary of the Pune-based Forum for Information Technology Employees (FITE), said more than 1,000 graduates were still awaiting joining letters.

“If more affected candidates come forward, we will raise the issue with the labour ministry to ensure it is resolved,” he said.

Uncertain outlook for fresh graduates

For many engineering graduates, the delay highlights the uncertainty facing entry-level hiring in the technology industry.

With IT companies prioritising productivity and automation, campus recruitment is becoming more closely tied to real-time business demand rather than long-term hiring projections.

While Tech Mahindra maintains it will honour its commitments, the pace of onboarding will likely depend on improvements in global technology spending and the company’s own project pipeline.