Due to Inflationary pressures, the Russia-Ukraine crisis, and the US and European banking spiral it is expected that Indian IT companies may cut down the hiring of engineers by around 40 percent year-on-year (YoY) in FY24.
Due to the economic uncertainty, layoff wave, and current conditions, there are major possibilities that there is less risk of people leaving their current jobs.
Additionally, record hiring and attrition numbers in FY22 and H2FY23 have kept costs high for the companies. It is expected that the hiring in the IT sector in Q4 will ‘remain flat’ as attrition and growth visibility have reduced.
Chief executive officer of TeamLease Digital Sunil C said, “We expect a 30-40 percent drop based on the current outlook. But this could change six months down the line if companies change their growth forecasts.”
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The data shows that in FY23 so far, IT companies have added a net headcount of around 280,000. To keep a better understanding of Indian IT through examples, Wipro’s attrition rate has also continued to ease to 21.2% from 23% in the previous quarter.
The firm’s total headcount at the end of the December quarter slipped to 258,744 from 259,179 in the last quarter. As of September 30, 2022, Wipro added 605 new employees.
Tata Consultancy Services (TCS) posted a decline of 2,197 people in its employee base, TCS headcount stood at 613,974 as on December 31, 2022.
The company also clarified that none of these headcount reductions are influenced by the demand environment, and were simply a result of mass hiring.
Cognizant added 5,900 jobs and the next two quarters. On the other hand, Accenture shocked the industry by announcing plans to trim its workforce by 19,000 over the next 18 months.
According to media reports, around 40% of Accenture employees are based in India, and around 7,000 jobs will be eliminated in the country.
Additionally, the freshers hiring through the campus for IT and Tech has slowed down 25% amid layoffs.
