TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra, the top 5 Indian IT services firms, would hire a total of over 1.8 lakh freshers this year, a recent record.
During the same period last year, firms hired nearly 80,000 freshers. This trend will very certainly continue in the coming year also, reports Moneycontrol.com.
This spike in hiring occurred as a result of these organizations’ growing attrition rates as they compete for applicants from the market’s limited talent pool. The five firms’ addition of over 2 lakh employees between January and December 2021 reflects the industry’s talent war.
The five IT firms added about 2.3 lakh staff in the fiscal year that ended in December 2021, more than doubling their net employee recruitment in 2021.
Two Factors For Spike In Hiring
One, despite the absence of large-scale projects (above $500 million in value), demand remains high, and IT firms have not observed a drop in deal signings. This is what assures firms that they will end the year with double-digit growth.
For example, Infosys has boosted its revenue forecast to 19.5-20 percent for the third time. It had given a 12-14 percent growth forecast at the start of the year. TCS and HCL Tech did not provide revenue forecasts, but they expect double-digit growth. Wipro is predicted to increase by 27-28 percent this year on a year-over-year basis.
Attrition is another key factor. For the quarter ended December, TCS and HCL Tech reported attrition rates of 15.3 percent and 19.8 percent, respectively. During the quarter, the attrition rates at Infosys, Wipro, and Tech Mahindra were all over 20%, at 25.5 percent, 22.7 percent, and 24 percent, respectively.
As a result of all of this, IT organizations are hiring more freshers.
Thierry Delaporte, Wipro’s CEO, stated last month on the firm’s earnings call that while attrition is lower than expected at 22.7 percent, the business is developing its talent pipeline to meet demand by boosting its fresher supply. In FY23, the corporation intends to hire 30,000 new employees.
In an earnings call with the press on February 1, CP Gurnani, CEO and MD, stated that the company is better at interacting with employees and has broad-based delivery centers in India and overseas to reduce attrition.
In addition, the firm plans to increase the number of campus recruiters to 15,000 in FY23, up from 10,000 this fiscal year. Tech Mahindra’s employee upskilling program has also been strengthened.
TCS has promoted 1.1 lakh employees so far this year, with another 40,000 planned for Q4 FY22. Employees are being recruited, according to Infosys.
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