In the IT jobs sector, TCS plans to recruit over 40,000 people from campuses this year. Wipro has not provided a hiring plan, but said it will hire more people than last year. Infosys is likely to hire nearly 25,000 people from campuses
To meet the growing demand in the IT jobs sector for talent that can execute projects offshore for clients looking to digitally transform their business, IT services providers – Tata Consultancy Services (TCS), Infosys and Wipro are hiring in significant numbers.
In the IT jobs sector, TCS plans to recruit over 40,000 people from campuses this year. Wipro has not provided a hiring plan, but said it will hire more people than last year. Infosys is likely to hire nearly 25,000 people from campuses.
“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”, Pravin Rao, chief operating officer at Infosys told analysts last week.
Analysts tracking the IT jobs sector say that more than 110,000 people this year, from a net addition of more than 90,000 jobs last year will be recruited by top five companies including TCS, Wipro, Infosys, HCL Technologies and Tech Mahindra.
“The new fiscal has commenced with 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 per cent”.
With an attrition-linked replacement hiring of more than 120,000 in the IT jobs sector, the total hiring churn of these companies was 210,000 last year, Karanth added.
TCS reported a record low 7.2 per cent 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 they were undertaking measures to retain talent in the IT jobs sector as there would be a further increase in attrition. “The attrition is likely to remain at this level for the next one or two quarters,” Rao of Infosys said. The near 15 per cent 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”, said Rao.
Saurabh Govil, chief human resources officer of Wipro, said it is seeing continued pressure in terms of attrition and for niche IT jobs such as cyber security, AI and for domain experts, the company has also promised skill-based bonuses.
“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”, said Govil.
To manage higher attrition rates, companies like DXC Technology, Mindtree and others are also looking to step up hiring in the IT jobs sector in next few quarters of this financial year.
Nachiket Sukhtankar, managing director, India of DXC Technology, said, up from 4,500 people last year, it had made offers to 7,000 people in IT jobs sector from campuses this year.
Mindtree declined to share exact hiring numbers, but Debhashis Chatterjee, chief executive said the company recruited 1,600 people in IT jobs sector 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 per cent and has been declining over the last few quarters.