Indian IT Industry to see a huge dip in hiring for FY24- HR Experts

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Indian IT Industry to see a huge dip in hiring for FY24- HR Experts

Lately, India’s IT Industry TCS, Infosys, Wipro, HCLTech and Tech Mahindra, etc have reported their first quarter results for Financial Year 2023-24.

IT Industry reported a Drop in Net Profit as mentioned below in the table; values in Crores. Margins have been under stress in the June quarter, however for Infosys as well as on a year-on-year basis.

CompanyQ1FY24Q4FY23Q1FY23
TCS11074113929448
Infosys594561285360
HCLTech353439833283
Wipro287030742563

Commenting on the above Data, Milind Mutalik, Former Chief People Officer of Accolite Digital Said, “I am not surprised such results were anticipated. If you look at the whole scenario, now everyone knows about the US economy for that matter when you look at the outsourcing happening to India beating the top ten IT organizations,”

“The major business 30 percent of our outsourcing is coming out of the banking financial services. Further, about 18 to 20 percent comes out of health care, next 18 to 20 percent comes out of telecom. We have been reading the news about some of the top banks failing which has an impact on IT companies as well.” He added.

India’s IT Industry except TCS has also reported a Drop in Headcounts as Table below.

CompanyQ1FY24Q4FY23Q1FY23
TCS6,15,3186,14,795606,331
Infosys3,36,2943,43,2343,35,186
Wipro249,7582,56,9212,58,574
HCL Tech223,4382,25,9442,10,966

Commenting on the above Data Usha Cherayil, Senior Director, Reflections Info Systems said, “We’ve been speaking about slowdown and recession, and all the global crises happening, it was bound to happen. So all these comparisons are versus a previous time when things were going upward. And now it’s obvious that because of the slowdown in demand increase in bench sizes, pressure on margins, and headcounts, it was bound to happen”

“In the upcoming quarter, there won’t be an overnight change, we will see a further dip in hiring for laterals, campus recruits, and gig workers as well in FY24” She added.

IT Industry also reported a Drop in Attrition as below in the Table. An interesting trend that emerged from their disclosures was the fact that attrition in all these companies reduced amid a slowdown in hiring.

CompaniesQ1FY24Q1FY23
TCS 17.8% 19.7%
Infosys 17.3% 28.4%
Wipro 19.2% 23.3%
HCLTech 16.3% 23.8%

Commenting on the Slow Hiring and onboarding of Campus Recruits, Aparna Misha, Sr. Manager- Customer Engagement & Sales, IT Gaint said, “This is a very sensitive topic for the session, there may be 3 to 6 months of minimum delay in the freshers onboarding in any of the IT giants give offers,”

Adding the impact on campus hiring, she said, “We will see a drop of 60-70% in Campus Hiring for coming quarters in FY24”

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