India's IT sector is witnessing a notable shift in workforce dynamics, with Gen Z employees leaving their jobs after an average tenure of 1.1 years, a 39% decrease from the 1.8 years average for millennials. This trend has led to a rise in replacement hiring, which now constitutes 35-40% of Gen Z hiring across the broader IT sector, compared to 20-25% two years ago. In IT services, replacement hiring for entry-level positions has surged to 55-60%. The high attrition rates are particularly pronounced in roles related to artificial intelligence (AI), cloud, and cybersecurity, where talent shortages are acute. Companies are responding by adopting more flexible, capability-driven hiring strategies and redesigning workforce structures to align with the shorter tenures of younger employees. This includes increasing contractual hiring and expediting onboarding processes, with many firms structuring entry-level roles around 12-24 month cycles to better fit the expectations of Gen Z professionals.