Of the 5,000 graduates offered jobs in 2022—the majority of whose joining was delayed by two years—755 have been laid off so far for failing to clear tests.

The assessments this time were tougher than usual, said five trainees and ex-employees The Ken spoke to. The threshold for passing was raised from 50% to 65%. On top of this, new material was added, and the number of questions was increased.

Then again, the times are changing. India’s IT-services industry has been a driver of economic growth for over two decades, contributing 7% to the country’s GDP and employing over 5 million people in FY24. But over the last three years, growth has stagnated—the ongoing tariff uncertainties being just the latest setback. But the real existential threat in this scenario is AI.

The pressure is already on. Clients want quicker turnarounds on smaller budgets. Companies, in turn, have found the perfect patsy: pre-trained freshers, compelled to jump into projects from the get-go.

Tune in.

Check out our latest episode featuring Soumya Rajan, founder and CEO of Waterfield Advisors, India’s largest multi-family office and wealth advisory firm.

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.Listen to the latest episode of Two by Two here