0 months ago
Persistent Systems skips FY27 campus hiring, prioritises lateral AI hires
Persistent Systems is a big company in India that builds computer software for other businesses.
It has decided not to hire new students straight from college in the next financial year.
Instead, it wants to hire people who already have some basic knowledge of artificial intelligence, or AI.
AI is the technology that lets computers learn and do smart things.
The company says its business customers want to spend their technology money on AI.
Those customers are being careful about spending on other computer projects.
The company believes hiring experienced workers is a better plan right now.
Other companies are making similar changes because of AI.
One company called BrowserStack cancelled job offers for some college students.
Business schools are keeping a close watch to make sure new graduates still find jobs.
Persistent Systems will skip campus recruitment for FY27 and focus on lateral hiring to match client demand for AI skills.
CEO Sandeep Kalra said the company wants to train lateral hires who already have basic AI skills.
The company's consolidated net profit rose 13.7% year-on-year to ₹483.04 crore in the April–June quarter.
Customers are keeping discretionary technology budgets tight and repurposing existing budgets toward AI, with overall IT spending up only 1–2%.
BrowserStack withdrew job offers from some 2026-batch engineering students citing AI productivity gains, while IIM Indore manages delayed onboarding risks.
- Who
- Sandeep Kalra, CEO of Persistent Systems, announced the decision; BrowserStack and IIM Indore director Himanshu Rai are also part of the story.
- What
- Persistent Systems will skip campus recruitment for FY27 and prioritise lateral hiring of professionals with foundational AI skills.
- Where
- India, mainly across its technology sector and business schools.
- When
- For the FY27 hiring cycle; the decision was reported alongside the company's April–June quarter results.
- Why
- AI is reshaping workforce requirements, and clients are repurposing tight technology budgets toward AI spending.
Students and Educators
Technology Companies
Skipping campus hiring
Students and Educators
Skipping campus recruitment and withdrawing offers leaves fresh engineering graduates with fewer entry-level opportunities and greater uncertainty.
Technology Companies
Lateral hiring of professionals with basic AI skills better aligns the workforce with evolving client demand as AI changes job requirements.
AI-driven productivity
Students and Educators
AI-led productivity gains threaten entry-level roles and create risks such as delayed onboarding for new batches.
Technology Companies
AI productivity improvements make firms more efficient, and early communication of hiring changes lets affected students plan alternatives.
Key facts
- Company
- Persistent Systems
- Decision
- Skip campus recruitment for FY27; prioritise lateral hiring
- Reason
- Client demand for AI skills; training laterals with basic AI skills
- CEO
- Sandeep Kalra
- Net profit (April–June quarter)
- ₹483.04 crore, up 13.7% year-on-year
- Client IT spending
- Overall incremental increase of 1–2%; budgets repurposed toward AI
- Related: BrowserStack
- Withdrew job offers from some 2026-batch engineering students citing AI productivity gains
- Related: IIM Indore
- Monitoring delayed onboarding risk; placements for 2026 batch reported stable
Quotes
Sandeep Kalra
CEO of Persistent Systems
“We have been hiring, but this is not campus hiring. We are hiring laterals in line with our demand because we want to train people who have the basic skills in AI.”
livemint.com
Himanshu Rai
Director of IIM Indore
“The main challenge we are navigating right now is the risk of delayed onboarding as companies naturally take a more cautious approach to new project kickoffs.”
livemint.com
Sources
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