Hiring at Indian IT giants TCS, Infosys, HCL, Wipro and Tech Mahindra may fall by 40%

The Indian IT industry, which is worth $245 billion, is facing a tough challenge in the current fiscal year. According to a report by staffing firm Xpheno, hiring in the sector is expected to drop by as much as 40% compared to the previous year. The report cites several reasons for this decline, such as low demand, high attrition, increased automation, and lack of new projects.

Low demand for IT services

One of the main factors affecting the hiring scenario is the low demand for IT services from global clients. The COVID-19 pandemic has disrupted many businesses and industries, leading to reduced spending on technology. Moreover, the geopolitical tensions between India and China, as well as the US and China, have also impacted the trade and investment flows in the region². As a result, many IT companies have reported lower revenue growth and margins in the recent quarters.

High attrition rate among IT professionals

Another challenge that the IT industry is facing is the high attrition rate among its employees. According to a survey by TeamLease Services, the average attrition rate in the IT sector was 18.5% in the first quarter of 2023, which is higher than the industry average of 15.9%³. The survey also found that 44% of IT professionals are looking for a job change in the next six months³. The main reasons for this are dissatisfaction with salary, work-life balance, career growth, and learning opportunities.

Increased automation and digital transformation

The IT industry is also undergoing a major transformation due to the increased adoption of automation and digital technologies. Many IT companies are investing in artificial intelligence, cloud computing, data analytics, and other emerging domains to enhance their service offerings and efficiency. However, this also means that they require fewer human resources to perform routine and repetitive tasks. Moreover, they also need to reskill and upskill their existing workforce to meet the changing demands of the market.

Lack of new projects and opportunities

The final factor that is affecting the hiring outlook is the lack of new projects and opportunities for IT companies. Due to the uncertain business environment and low demand, many clients have delayed or cancelled their IT projects. This has resulted in lower utilization rates and

Source:

(1) Hiring at Indian IT giants TCS, Infosys, HCL, Wipro and Tech Mahindra .... https://timesofindia.indiatimes.com/gadgets-news/hiring-at-indian-it-giants-tcs-infosys-hcl-wipro-and-tech-mahindra-may-fall-by-40/articleshow/102504718.cms.

(2) How hiring at top IT firms in India has changed over two years - CNBCTV18. https://www.cnbctv18.com/education/it-hiring-changes-infosys-tcs-wipro-tech-mahindra-hcl-tech-jobs-14299142.htm.

(3) TCS, Infosys, HCL Tech among IT biggies looking to hire 40% less this .... https://www.moneycontrol.com/news/business/tcs-infosys-hcl-tech-among-it-biggies-looking-to-hire-40-less-this-fiscal-11108481.html.

FAQ's

Did Wipro freeze hiring?

The success of the Indian information technology industry is also reflected in the hiring, onboarding of freshers, and variable payments, all of which have been somewhat unimpressive so far in FY23 in comparison to FY22.

Did Infosys freeze hiring?

Infosys slashed hiring by 46% in FY23, causing drop in headcount while resisting layoffs.

Can I rejoin Wipro after 3 months?

According to the official Wipro website, former workers can reapply to Wipro for qualified jobs by recommendations or directly six months after leaving the business.

Will Infosys layoff in 2023?

Infosys Cut Hiring by 46% in Fiscal Year 2023, Reduces Headcount by 3,611 Employees While Resisting Layoffs.