Cognizant to Hire 20,000 Freshers in 2025 Amid Focus on Managed Services
Cognizant Technology Solutions, the U.S.-based IT services firm, has announced plans to hire 20,000 freshers in 2025, reinforcing its talent pyramid to support growing demand for managed services and boost cost efficiency.
- This strategic move comes at a time when the company is realigning its workforce structure to adapt to a changing services landscape.
- The freshers will help Cognizant optimize salary costs by increasing the proportion of junior staff relative to senior professionals.
Workforce Realignment Follows Headcount Decline
Cognizant ended Q1 2025 with around 336,300 employees, a slight drop of 500 from the previous quarter and 8,300 year-on-year, reflecting a period of adjustment and consolidation.
- The company has seen rising attrition, which increased by 2.7 percentage points, taking the 12-month rolling attrition rate to 15.8%.
- Utilisation levels—a key metric of employee productivity—fell by 3 percentage points to 85%, indicating underuse of available talent.
CEO Highlights Strategic Shift Toward Cost-Efficient Growth
Speaking on the hiring strategy, CEO Ravi Kumar S said the intake of fresh graduates will help reshape Cognizant’s talent pyramid, aligning the workforce with the managed services model.
- Managed services typically involve long-term contracts with recurring revenue and demand a larger base of entry-level talent.
- With organic growth returning, the company sees this as the right time to re-baseline and rebuild its internal structure.
Talent Pyramid: A Proven IT Cost Strategy
The pyramid model in IT services involves having a broader base of junior employees and fewer senior-level staff, optimizing the cost-to-delivery ratio.
- This structure supports scalable service delivery, especially in labour-intensive contracts and support-based engagements.
- By leveraging freshers, Cognizant aims to improve margins while maintaining service quality and delivery capacity.
Industry Peers Stay Cautious on Hiring Targets
While Cognizant sets a clear hiring benchmark, other Indian IT majors have refrained from announcing precise hiring numbers for FY26 due to ongoing demand volatility.
- However, analysts expect the top five Indian IT firms to collectively create 80,000–84,000 jobs in FY26, driven by long-term deals and digital transformation projects.
- Cognizant’s announcement places it among the most aggressive hirers in the upcoming fiscal year, reflecting confidence in a gradual industry rebound.
