Persistent Systems skips campus hiring for FY27, prioritises lateral AI talent

The shift marks one of the clearest signs that AI is reshaping entry-level hiring across India’s technology sector. Software testing platform BrowserStack has withdrawn job offers made to some engineering students from the 2026 graduating batch, citing significant productivity improvements driven by AI within its product and engineering teams, Mint reported. BrowserStack said the decision was difficult but was communicated early so affected students could explore other opportunities. It said those candidates would receive priority consideration if suitable roles become available in the future. The company remains on track to onboard more than 15 MBA graduates, though the number of impacted engineering students is understood to be higher.

Leading management institutes are also watching the trend. “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,” said Himanshu Rai, director of IIM Indore, which is keeping “a close, proactive dialogue with our corporate HR partners to solidify start dates and ensure the batch is supported and protected from any sudden market shifts.” The B-school clarified that final placements for the batch of 2026 have not faced any “major concerns or lingering challenges.”

For Persistent, the decision to skip campus hiring reduces short-term training costs and aligns headcount with current project demand. The risk is that a prolonged pause in fresh graduate intake could create a talent bottleneck when discretionary spending eventually recovers. Kalra said the company remains open to expanding lateral hiring as AI-related projects grow.

The broader hiring environment is becoming increasingly cautious as companies balance AI investments with slower growth in discretionary technology spending. While overall technology budgets continue to rise marginally, businesses are redirecting existing spending toward AI initiatives rather than expanding recruitment. That pattern suggests campus hiring could remain under pressure in the near term.