Infosys’ bold hiring plan at Davos sparks optimism: 20,000 freshers to be onboarded as AI reshapes growth narrative
At a time when investors remain cautious about global growth and technology spending, Infosys has sent out a strong signal of confidence from the global stage.
Speaking on the sidelines of the World Economic Forum (WEF) 2026 in Davos, Infosys CEO Salil Parekh confirmed that the IT major will hire 20,000 college graduates in FY27, underlining the company’s belief that artificial intelligence will drive the next phase of growth for the sector.
“From April 1, 2026 to March 31, 2027, Infosys will hire another 20,000 college graduates; it’s already in our plan,” Parekh, Moneycontrol
The announcement comes at a time when global technology firms are balancing cost optimisation with aggressive investment in AI capabilities, making Infosys’ hiring roadmap a key signal for both investors and the broader IT ecosystem.
Here’s what happened today and why traders reacted
Infosys’ hiring announcement and AI commentary at Davos immediately caught market attention as it provided clarity on management confidence around future demand.
Market participants tracked three immediate takeaways:
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Infosys sees AI demand exceeding legacy business compression
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Hiring plans suggest visibility on deal pipeline
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Client projects are moving from pilot stage to production deployments
Traders interpreted this as a constructive signal for the IT sector, which has been under pressure due to concerns around delayed tech budgets, weak discretionary spending, and global macro uncertainty.
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AI is no longer experimental, projects are now running at scale
Parekh made it clear that artificial intelligence is not just a buzzword inside Infosys anymore. According to him, client adoption has crossed the proof-of-concept stage in several cases.
“In financial services, (out of) 25 of our largest clients, (in) 15 we are the AI partner of choice… These are real projects. This is not proof of concept. These are projects in banks, which are being used at scale today,” he said.
He explained that AI agents are already creating tangible demand across multiple business areas:
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Software development using AI agents on foundation models
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Customer service transformation using automation
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Modernisation of legacy enterprise systems
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Hybrid delivery models combining human teams and AI agents
“We see some places where there’s compression and some places where there’s growth. And we see the growth a little bit more than what we see on the compression,” Parekh noted.
For investors, this commentary reinforces the view that AI could evolve from being a margin threat to becoming a revenue growth catalyst for large IT firms.
Hiring momentum already strong in FY26
The FY27 hiring plan builds on an already improving recruitment trend at Infosys.
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18,000 graduates hired in the first nine months of FY26
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Net headcount rose by over 5,000 in Q3FY26
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Target of 20,000 fresher hires by end of FY26
Additionally, the company recently raised entry-level salaries for select specialised roles. Moneycontrol had reported on December 25 that Infosys is now offering packages of up to ₹21 lakh per annum for niche technology roles, highlighting intensifying competition for AI-ready talent.
This strengthens the investment narrative that Infosys is positioning itself as an AI-first services company rather than merely defending its legacy outsourcing business.
Pricing models still evolving as AI delivery matures
While AI opens new revenue streams, investors remain wary about pricing pressure and margin sustainability. Parekh acknowledged that monetisation frameworks are still evolving.
“It’s still an early time period… we are already doing some of the pricing based on agents, pricing based on joint teams, which is agent plus human, but it’s a very small number of that work,” he said.
He added that more standardised pricing models could emerge over the next few quarters as AI delivery becomes mainstream across enterprise clients.
For the market, this suggests near-term margins may remain volatile, but longer-term operating leverage could improve if AI productivity scales efficiently.
US growth optimism could revive tech spending sentiment
Another important signal for investors came from Parekh’s commentary on global technology budgets, particularly in the US.
“What appears to be is that many of the large companies are seeing the growth of the US GDP. This is more for the US side first than for Europe,” he said.
This matters because North America remains the largest revenue contributor for Indian IT firms. Improving US macro indicators could encourage clients to accelerate discretionary tech spending, which has remained muted over the past few quarters.
What this means for investors and the IT sector outlook
For equity investors, Infosys’ commentary from Davos reshapes the short-to-medium term narrative around IT stocks.
Key implications for portfolios:
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Positive signal for long-term revenue visibility
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Hiring confidence suggests stronger order pipeline
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AI-led services may support valuation re-rating over time
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Near-term volatility may persist due to pricing transition
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Stock-specific performance likely to reward firms with credible AI execution
While the broader IT index may still react to global macro swings, companies demonstrating execution in AI monetisation could increasingly see differentiated investor interest.
Outlook: cautious optimism replacing structural pessimism
The Infosys CEO’s remarks mark an important shift in tone. Over the past year, IT stocks were largely driven by fear — weak client spending, delayed deals, pricing pressure and automation risks. Davos 2026 is now introducing a counter-narrative: that AI may expand the market faster than it disrupts it.
Hiring 20,000 graduates is not just an HR decision — it is a strategic signal to markets that Infosys sees durable demand visibility beyond the current uncertainty cycle.
For investors tracking the IT sector, the message from Davos is clear: the AI opportunity is no longer theoretical, and companies best positioned to execute may define the next leadership cycle in Indian equities.
