India's IT sector sees surge in replacement hiring as Gen Z tenures shrink

India's IT sector is experiencing a sharp increase in replacement hiring as Gen Z professionals leave jobs faster than previous generations, according to staffing experts. Average tenure for Gen Z workers has fallen to 1.1 years, down nearly 39% from 1.8 years for millennials. About 35% to 40% of hiring across the broader IT sector is now replacement-driven, up from 20% to 25% two years ago. In IT services, 55% to 60% of entry-level hiring is driven by replacements. The trend is most pronounced in global capability centres and niche product roles, where faster project cycles and strong demand for specialised skills lead to quicker role switches. Attrition is particularly high in artificial intelligence, cloud, cybersecurity and platform engineering roles, where talent shortages are severe. Global capability centres currently face skill gaps of 38% to 42% in AI and data roles, 32% to 36% in platform engineering and 28% to 32% in cloud infrastructure, according to Quess Corp. Companies are responding by redesigning workforce strategies around shorter expected tenures. Contractual hiring now accounts for 25% of GCC roles, up from 18% two years ago. Firms are also increasing use of contract-to-hire models, internal mobility programmes and structured learning pathways. Data from Quess shows companies that invest in structured learning pathways of six to nine months see nearly 30% better retention.