Hexaware Technologies CEO R. Srikrishna has indicated a slowdown in fresher hiring across the IT sector due to rising AI-related costs and a preference for experienced lateral talent. The update comes as the company recently trimmed its full-year revenue growth guidance to 6-7% amid macroeconomic headwinds and delayed deal ramp-ups. Investors are monitoring how these shifts impact the company’s operating margins.
Hexaware Technologies CEO R. Srikrishna has highlighted a notable change in hiring patterns across the IT industry, pointing to a reduced emphasis on recruiting fresh graduates. This trend is driven by the growing costs associated with artificial intelligence integration and a strategic preference for experienced professionals, also known as lateral hires. While freshers remain part of the long-term talent pipeline, the immediate focus has shifted toward individuals who can immediately contribute to complex, AI-driven projects.
The CEO noted that while AI is accelerating development speeds—often allowing for faster project completion—the initial financial impact of adopting these technologies requires a more efficient allocation of human resources. This adjustment in hiring strategy is part of the company’s broader 'Zero Friction Enterprise' framework, which aims to leverage AI for modernization and efficiency. In the company’s view, younger talent remains well-positioned for the future due to their native understanding of AI tools, even if the current hiring pace is moderated.
For investors, this news arrives alongside important updates on the company’s financial performance. In its latest quarterly results for the second quarter of the 2026 calendar year, Hexaware reported revenue of $405.4 million. While this represented a 6.1% increase compared to the same period last year, the company recently adjusted its full-year revenue growth guidance downward to a range of 6% to 7%, down from 7.6%. Management cited macroeconomic uncertainty and delays in the ramp-up of new deals as the primary reasons for this cautious outlook.
Market participants have reacted to these developments with caution. As of August 18, 2026, Hexaware shares were trading approximately 0.63% lower, reflecting ongoing investor scrutiny regarding growth momentum in the IT sector. The company faces a competitive environment where heavy investments in AI capabilities are essential to stay relevant, which can place pressure on profit margins. Currently, the company maintains an EBIT margin of 13.6%, a figure that stakeholders will likely watch closely in upcoming quarters to ensure that cost-efficiency measures remain effective.
Looking ahead, the key monitorables for shareholders will be the pace of new deal conversions and whether the company can successfully navigate the current environment of delayed project executions. Investors should also track management commentary on how the hiring strategy evolves and whether the shift toward lateral hiring yields the expected efficiency gains in the coming months.