New Delhi, Dec. 29 -- Infosys Ltd, India's second-largest software services provider, will hire fewer graduates directly out of college in the coming years, amplifying concerns for the country's engineering students as automation continues to shrink entry-level job opportunities.

"INFY (Infosys) expects to hire fewer freshers in the future, enabled by higher productivity," said BMO Capital Markets analysts Keith Bachman, Bradley Clark, Adam J. Holets, and Jonathan Stein, in a 16 December note, citing interaction with the company's management.

"INFY also envisions potential for revenue per headcount to increase," the research firm said. "Management expects headcount to grow modestly over the next few years due to increasing employee prod...