India, Jan. 22 -- The Indian IT services sector, a critical engine of the nation's economy, has encountered a transformative phase as of the third quarter of fiscal year 2026 (Q3FY26).

This period, ending 31 December 2025, has been defined by a fundamental shift in the relationship between revenue growth and human capital requirements. Historically, the sector followed a linear trajectory where increased contract volumes necessitated a proportional expansion of the workforce. However, the latest earnings releases from the industry's Tier-1 and mid-tier players, including TCS, Infosys, Wipro, HCLTech, and Tech mahindra, reveal a structural decoupling of these two metrics.

The industry is navigating a "Barbell Model" of talent demand, whe...