IT firms redraw hiring strategies as GenZ moves on faster

Quess Corp.

Across IT services, GCCs and product companies, most Gen Z employees are staying only 18-24 months before moving on.

The pattern differs across segments of the IT industry.

In IT services, Gen Z attrition is around 20%, with average entry-level tenure at 1.4-1.6 years, according to TeamLease Digital. Product companies are retaining younger workers for slightly longer, around 1.8-2 years, because the work tends to be more hands-on from the start.

GCC exits are often planned, with Gen Z professionals moving on “for credential-harvesting” after gaining enough skills or credentials, Neeti Sharma, CEO of TeamLease Digital, said. “IT services exits are earlier and more reactive, driven by a gap between hiring promises and delivery reality,” she said. “Product companies hold them a little longer because the work tends to be more hands-on from day one.”

Strategy tweaks

Companies are redesigning workforce strategies around the assumption that younger employees may not stay for long, increasing contractual and project-based hiring and speeding up onboarding and training.

“Many companies are structuring entry-level roles around 12-24-month cycles to match shorter tenures,” Alug said. “This is leading to quicker hiring, more structured onboarding and modular training that builds job-ready skills early.”

Contractual hiring now accounts for 25% of GCC roles, up from 18% two years ago, according to Quess Corp

Staffing firms said companies are also increasing the use of contract-to-hire models, internal mobility programmes and structured learning pathways to improve retention.

“Companies are responding in a more practical way, with a noticeable shift towards contract-to-hire and project-based staffing,” Alug explained. “The priority is to keep roles filled and teams running smoothly despite higher movement.”

Sanketh Chengappa, director at Adecco India, said companies are also moving towards faster digital onboarding, microlearning and continuous reskilling as demand shifts toward candidates with early experience or AI skills.

“Entry-level openings and campus hiring have slowed, while reliance on flexible staffing has increased and a growing share of hiring is now replacement-driven as Gen Z tenure drops below 24 months,” he said.

Onboarding and training are becoming faster and more digital, with shorter learning modules, personalised pathways and continuous upskilling, Chengappa added.

Data from Quess shows companies that invest in structured learning pathways of six to nine months are seeing nearly 30% better retention, suggesting that for India’s IT sector, retaining Gen Z employees may increasingly depend on giving them reasons to stay rather than expecting them to.