Consulting Firms Shift to Project-Based Fresher Roles, AI Drives 21% Contractual Hiring

• Indian consulting firms are replacing permanent fresher roles with project-based contracts, with a 21% shift in two quarters.
• The transition is driven by AI reshaping everyday work, leading to contractual, apprenticeship, or project-linked entry-level positions.
• Freshers with AI proficiency are commanding 10-15% higher starting salaries, as firms seek candidates who can work with AI tools.
• Hiring for mid-senior and senior roles has either remained flat or declined, indicating a cautious approach to expanding middle layers.
• Leadership compensation is increasingly tied to AI-led outcomes, with variable pay forming 40-60% of KMP compensation in firms accelerating AI investments.