In IT enterprises, hiring will remain subdued; the emphasis will be on upskilling talent.
Focus on upskilling talents rather than hiring in IT companies. According to analysts, this suggests that IT companies confront a challenging demand environment.
BENGALURU: In the first quarter of the current fiscal year, many IT companies reduced their net employee additions and stated that future recruiting will depend on the macroeconomic climate.Tata Consultancy Services (TCS), the largest IT services provider in India, has delayed the onboarding of lateral recruits due to project delays, while HCLTech and Infosys have deferred salary increases for employees.
According to analysts, this suggests that IT companies confront a challenging demand environment. In spite of this, clients are concentrating on digital transformation and emerging technologies, such as generative AI, and all IT majors are investing significantly in this cutting-edge technology.
TCS added 523 employees during the June quarter, a decrease of 96% compared to the 14,136 employees it added during the same period last year. The number of Wipro’s employees decreased by 8,812 in the first quarter. The net manpower at HCLTech decreased by 2,506 during the quarter.
C Vijayakumar, CEO and MD of HCLTech, stated at an earnings conference, “We have decided to skip compensation review, beginning with the managerial layer, which is E4+, and defer for junior to mid-level employees by a quarter, which is E3 and below levels. We will continue to monitor industry trends and take necessary action as necessary.”
The hiring outlook in IT sector for Q2FY24 is expected to be cautious yet strategic. While hiring volumes may remain relatively muted, organisations will focus on optimising existing talent, strategically acquiring specialised skill sets, and embracing emerging technologies, NLB Services said. During the earnings conference, TCS said macroeconomic uncertainties have resulted in greater caution among clients.
Given the uncertain economic outlook, TCS sees strong client interest in cost optimisation, vendor consolidation, and integrated operations. Companies are upskilling their existing employees instead of recruiting new ones. Wipro is training its associates in AI. TCS is planning to create a talent pool of 100,000 Generative AI-trained associates.
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