For young Indians who saw IT as a ticket into the middle class, the change means that career path is becoming less clear.
Those who do break in and build valuable skills will remain in demand, but the days of young IT staffers brandishing five or more competing offers are over.
Yet that hasn't necessarily translated into slower wage growth. Mercer LLC expects industry salaries to grow 12 percent this year, the same as in 2012.
As India's economy diversifies, graduates have more attractive career options, including at multinationals with a growing India presence, such as Google Inc, which means IT vendors must fight to stay attractive.
"We see IT companies as a back-up," said SS Jayaram, a final-year engineering student in Bangalore who says he chose a job in India with Mu Sigma Inc, a fast-growing US-based data analytics company, over offers from IBM and TCS.