IT services providers led by Tata Consultancy Services (
), and are hiring in significant numbers to meet the growing demand for talent that can execute projects offshore for clients looking to digitally transform their businesses.
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TCS plans to hire over 40,000 people from campuses this year, while Infosys is likely to recruit nearly 25,000 people from campuses. Wipro, which has not provided a hiring plan, said it will onboard more people than last year.
“…growth itself has picked up and on top of it, most of the growth volumes are happening in India, and consequently, there is tremendous demand for talent,” Infosys’ chief operating officer Pravin Rao told analysts last week.
Analysts tracking the sector say the top five companies including TCS, Wipro, Infosys, HCL Technologies and Tech Mahindra will hire more than 110,000 people this year, from a net addition of more than 90,000 jobs last year.
“The new fiscal has commenced with a hiring buoyancy due to higher projected attrition, fresher hiring plans, the release of pent-up demand, return of IT spending, and a re-filling of benches to stabilize utilisation rates,” said Kamal Karanth, co-founder of specialist staffing agency Xpheno. “The collective impact of these factors will throttle the hiring action by more than 20%.”
With an attrition-linked replacement hiring of more than 120,000 the total hiring churn of these companies was 210,000 last year, Karanth added.
TCS reported a record low 7.2% attrition rate in the fourth quarter of the previous fiscal year, the attrition rates rose sharply for Infosys and Wipro.
Both the Bengaluru-based companies confirmed that there would be a further increase in attrition and that they were undertaking measures to retain talent. “The attrition is likely to remain at this level for the next one or two quarters,” Rao of Infosys said. The near 15% attrition rate is at the high end of the company’s average and is higher than the previous quarter. “With compensation intervention, promotions and other initiatives we are confident of sustaining it at this level… This year (FY21) we added 21,000 employees from campuses globally and we plan to add 25,000 from campuses this year,” Rao said.
Saurabh Govil, chief human resources officer of Wipro, said it is seeing continued pressure in terms of attrition and has also promised skill-based bonuses for niche skill areas such as cybersecurity, AI and for domain experts.
“We are seeing continued pressure. The idea is to ring-fence the talent that is critical for our clients. Our campus hiring was 3,000 people this quarter and (it) will be much more robust,” Govil said.
Companies such as DXC Technology, Mindtree and others are also looking to step up hiring in the next few quarters of this financial year to manage higher attrition rates.
Nachiket Sukhtankar, managing director, India of DXC Technology, said it had made offers to 7,000 people from campuses this year, up from 4,500 people last year.
Mindtree declined to share exact hiring numbers, but chief executive Debhashis Chatterjee said the company recruited 1,600 people in the last quarter—a combination of campus and lateral hires. “I can see that in the next two quarters, we can only see that number increasing as we go along in terms of adding to be a good mix of campus as well as laterals,” he said. Mindtree’s attrition dropped marginally to 12.5% and has been declining over the last few quarters.