Infosys, TCS, and Wipro Take a Hit: Witness Drastic Decline in Hiring and Net Employee Addition in Q1 FY24

Indian IT companies, including Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech, have reported a significant reduction in headcount addition during the first quarter of FY 2023-24 compared to the previous year. This decline in employee hiring indicates a shift in their strategies amidst changing market dynamics.

TCS, for instance, added only 523 employees in the quarter ending June 2023, in stark contrast to the 14,136 employees added in the same quarter last year. This represents a substantial decrease in net employee addition, which was 28 times higher in the previous year.

Milind Lakkad, TCS Chief Human Resource Officer, revealed that the company plans to maximize the potential of its existing workforce rather than expanding it further.

Similarly, Wipro witnessed a decline of 8,812 net headcount addition in Q1 FY24, compared to the remarkable increase of 15,446 employees in the year-ago quarter. Wipro's Chief Human Resources Officer, Saurabh Govil, emphasized that the company would now focus on hiring only for critical areas, particularly in AI, data, security, and engineering, aligning their recruitment plans with the evolving market demands.

HCLTech experienced a reduction of 2,506 employees in their headcount during the first quarter of FY24, compared to a net addition of around 2,089 employees in the same quarter last year. The company also announced the deferral of annual salary hikes for some employees as part of its cost-containment measures.

On a similar note, Infosys saw a decrease of over 7,000 employees in its headcount during Q1 FY24, following the trend set by its peers Wipro and HCLTech. The company's total headcount now stands at 336,294 staff members.

Salil Parekh, CEO of Infosys, expressed the company's focus on enhancing its AI capabilities in the upcoming quarters. With 80 active client projects utilizing generative AI, Infosys aims to transform the client experience and bolster its service portfolio with offerings like "Topaz," a comprehensive AI solution resonating well with clients.

The IT companies' cautious approach to hiring and cost optimization reflects the rapidly evolving business landscape and the growing emphasis on leveraging existing resources and specialized skills in crucial areas like AI and data. As the industry continues to evolve, these companies are strategically aligning their workforce and investment plans to stay competitive and thrive in the dynamic IT sector.