The Indian IT industry is expected to reduce campus intake this year due to weak global cues and a cut in discretionary spending by clients. Infosys and HCL Tech’s subdued hiring signals a tough road ahead for freshers. IT giants like TCS, Infosys, and HCL Technologies reported a decline in employee tally in Q2. Global growth concerns, inflation, interest rates, reduced investment, and geopolitical shocks have exacerbated worries.
Tech companies say that clients continue to defer newer, non-critical initiatives, choosing to focus on optimisation. While global voices concede that there are no signs of bottoming out just yet, JP Morgan’s Jamie Dimon has warned that the world is facing the ‘most dangerous time in decades’. Meanwhile, Infosys’s headcount fell by 7,530 to 3,28,764 as of September 30, 2023, against 3,36,294 in the June quarter. Infosys, which hired over 50,000 freshers last year, has made it clear that it is not going to campus for recruitment for the time being. The Bengaluru-headquartered company slashed annual sales forecast to 1-2.5 per cent (from the previously stated 1-3.5 per cent) in a sign of continued curtailment in IT projects amid global macro economic uncertainties. TCS reported a decline (of 6000 quarter-on-quarter) with its overall staff count at 6,08,985 at the end of September 2023, but has maintained a fresher hiring target of 40,000 for the current fiscal FY24. TCS chief human resources officer Milind Lakkad said the company has not stopped hiring, but the overall new hires are trailing the number of people quitting the company due to which the overall count is down. HCLTech’s total employee base dropped by 2299 to 2,21,139 at the end of the September 2023 quarter compared to June quarter as the company reduced hiring amid an easing of attrition level. “Due to significant fresher bench and reduced demand, major Indian IT firms are scaling down campus recruitment. The decision is prompted by a weak deal pipeline and recessionary concerns in the US market,” Krishna Vij, Business Head – IT Staffing at TeamLease Digital said.
