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IT giant’s headcount drops! The number of employees at top companies in India’s information technology industry fell for the fourth consecutive quarter. This decline can be attributed to reduced entry-level hiring and a slow hiring process to compensate for attrition. The uncertain demand environment in key markets also plays a role in this trend.
The headcount of the top eight IT companies fell by 17,534 in the quarter ended December 31 from the previous three months, ET said, citing data compiled by professional human resources firm Xpheno. Companies such as Tata Consultancy Services, Infosys, Wipro, HCLTech, LTI Mindtree, L&T Technology Services, Tech Mahindra and Cognizant’s India operations saw a record-high headcount fall of 75,000 compared to the same period last year. decline over at least six years.
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Kamal Karanth, co-founder of Xpheno, said the total headcount of the eight companies has now dropped to close to early 2022 levels. As of the end of December, these companies employed just under 2 million people.
The Indian IT industry, which employs millions of engineers, has experienced a hiring surge around 2021 and early 2022 due to increased global demand for digitalization and cloud transformation in the wake of the Covid-19 pandemic. However, demand has slowed as customers in markets such as the United States and Europe have become more cautious about discretionary spending due to high interest rates, inflation and concerns about conflicts such as the Israel-Hamas and Russia-Ukraine disputes.
Given the glut of hiring in 2021, slowing demand has had a direct impact on hiring and headcount over the past few quarters.
According to data collected by Xpheno, the companies’ net headcount began to decline in the January-March 2023 quarter, falling by 12,455 people compared with the previous three months. The figure fell by a further 28,387 in the April-June quarter and by 16,624 in the following three months (to September).
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However, experts say this trend may soon be reversed. The recent encouraging financial performance of various platform vendors and cloud providers may lead to increased demand and therefore increased recruitment by IT vendors. Additionally, increased client requirements for support in basic offshore-focused positions have led to greater demand for entry-level talent.
Yugal Joshi, a partner at technology industry research firm Everest Group, said these companies were recruiting aggressively before demand slowed. However, to protect profits, some of these companies are now delaying the onboarding of graduates previously hired during on-campus internships. In fact, some graduates admitted in 2022 are yet to be accepted by some large IT companies.
The headcount of the top eight IT companies fell by 17,534 in the quarter ended December 31 from the previous three months, ET said, citing data compiled by professional human resources firm Xpheno. Companies such as Tata Consultancy Services, Infosys, Wipro, HCLTech, LTI Mindtree, L&T Technology Services, Tech Mahindra and Cognizant’s India operations saw a record-high headcount fall of 75,000 compared to the same period last year. decline over at least six years.
expansion
Also Read | Narayana Murthy’s regret: Infosys founder says not rewarding employees better
Kamal Karanth, co-founder of Xpheno, said the total headcount of the eight companies has now dropped to close to early 2022 levels. As of the end of December, these companies employed just under 2 million people.
The Indian IT industry, which employs millions of engineers, has experienced a hiring surge around 2021 and early 2022 due to increased global demand for digitalization and cloud transformation in the wake of the Covid-19 pandemic. However, demand has slowed as customers in markets such as the United States and Europe have become more cautious about discretionary spending due to high interest rates, inflation and concerns about conflicts such as the Israel-Hamas and Russia-Ukraine disputes.
Given the glut of hiring in 2021, slowing demand has had a direct impact on hiring and headcount over the past few quarters.
According to data collected by Xpheno, the companies’ net headcount began to decline in the January-March 2023 quarter, falling by 12,455 people compared with the previous three months. The figure fell by a further 28,387 in the April-June quarter and by 16,624 in the following three months (to September).
expansion
However, experts say this trend may soon be reversed. The recent encouraging financial performance of various platform vendors and cloud providers may lead to increased demand and therefore increased recruitment by IT vendors. Additionally, increased client requirements for support in basic offshore-focused positions have led to greater demand for entry-level talent.
Yugal Joshi, a partner at technology industry research firm Everest Group, said these companies were recruiting aggressively before demand slowed. However, to protect profits, some of these companies are now delaying the onboarding of graduates previously hired during on-campus internships. In fact, some graduates admitted in 2022 are yet to be accepted by some large IT companies.
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