IT companies slow down hiring; TCS and Infosys see a drop in headcount in FY23

IT companies slow down hiring; TCS and Infosys see a drop in headcount in FY23

Top two IT companies together have added a total of 51,819 employees in this fiscal year in comparison to 1,57,942 employees the companies added in the previous year.

FPJ Web DeskUpdated: Sunday, April 16, 2023, 10:58 AM IST
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IT companies slow down hiring; TCS and Infosys see a drop in headcount in FY23 | Canva

IT companies are going to slow on hiring due to increasing uncertainty in demand for technology in markets like the US and Europe. Industry experts also expect that the macroeconomic challenges and geopolitical issues in these countries could severely impact the hiring process.

According to a report by the Economic Times, India's top two firms Infosys and Tata Consultancy Services have seen close to a two-third drop in cumulative hiring in the financial year 2023 in comparison to the previous fiscal. The companies together have added a total of 51,819 employees in this fiscal year in comparison to the 1,57,942 employees the companies added in the previous year.

TCS in the final quarter added only 821 people whereas Infosys which is the second-ranked IT firm in the country reported a decline of 3,611 in headcount. The drop in hiring by IT firms was majorly due to a decrease in technology spending and increasing global uncertainty.

With the IT giants reporting a lower than expected growth in the quarter that ended in March human resource executives are finding the low hiring rate as worrying.

TCS reports uncertain outlook for 2024

During the pandemic, there was an increase in demand for digital services which resulted in higher-than-average hiring in the last two-three years. But earlier this week both the IT majors Infosys and TCS reported an uncertain outlook for the 2004 fiscal year due to a fall in demand, deal cancellations, and delayed deal closures.

TCS hiring

TCS said that the company will be bringing in more employees in North America on its payroll to replace subcontractors for long-term cost benefits. But the company similar to the last year has retained its hiring targets of 40,000 for the financial year 2024. The company in the last fiscal had hired 44,000 freshers which is lower than the estimated 45,000-47,000.

Infosys hiring

On the other hand, Infosys in 2023 onboarded 51,000 freshers slightly higher than its estimated 50,000. The company said it has a rich bench utilisation of 80 per cent and it further added that the IT major is ready to move into production projects. The tech giant also said that it has an agile model for hiring that is flexible to accommodate an increase in demand.

Fall in shares

After TCS announced its quarterly results on Thursday the shares of the IT major fell by 1.5 per cent to Rs 3,192 per share. Even Infosys shares saw a fall of 3.1 per cent to Rs 1,383.40 per share.

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