Archive · 27 Jan 2026
AI Drives Shift in IT Hiring
AI is changing how IT companies like Mphasis hire people.
Instead of looking at degrees, they now focus on skills like learning quickly and solving problems.
Mphasis has stopped hiring fresh engineering graduates directly from campuses and instead uses internships and hackathons to find new talent.
They believe that being able to learn new things fast is more important than having specific skills.
AI has also reduced the need for lower-level engineering jobs, and companies are now more interested in hiring experienced professionals with domain expertise.
The traditional structure of the IT workforce is changing, becoming more like a diamond shape.
Companies are also shifting from hiring based on the number of people to hiring based on the outcomes they can achieve.
Mphasis has stopped campus hiring of engineering graduates for the past two years.
Fresh talent is now hired mainly through 3-6 month internship programs and hackathons.
Generative AI and agentic AI have reduced demand for L0 and L1 roles, with L2 roles assisted by AI agents.
The traditional IT workforce pyramid is shifting toward a 'diamond-shaped' structure.
Experienced professionals (5+ years) remain in strong demand due to domain expertise.
- Who
- Mphasis, an IT services company
- What
- Shifting hiring practices due to AI, focusing on learnability and problem-solving
- When
- Over the past two years
- Where
- Globally, with a focus on the IT services industry
- Why
- To adapt to the changing technology landscape and the impact of AI on the workforce
- Company
- Mphasis
- Hiring Method
- Internships and hackathons
- Focus Skills
- Learnability and problem-solving
- Demand for Experienced Professionals
- Strong demand for professionals with 5+ years of experience
- Impact of AI
- Reduced demand for L0 and L1 roles, L2 roles assisted by AI agents
- Workforce Structure
- Shifting from a pyramid to a diamond-shaped structure
- Pricing Model
- Shift from capacity-based to outcome-based pricing