Cognizant Back In Hiring Mode, Bodes Well For IT Sector

I have the ability to hire 20,000 laterals per quarter. I am not only preparing for a slow velocity market, but preparing for a high velocity market if it happens at any point of time - Ravi Kumar, CEO, Cognizant, during the investors’ day last month

Bengaluru: Project wins, ramping up of reserve employees and faster AI adoption are prompting some IT firms to hire in India though hiring across the board remains tepid in the Indian IT industry.

According to sources in the know, Cognizant is aggressively adding headcount in India. These recruitments are being done across various job roles for multiple positions.

“Cognizant is hiring in good numbers. We have not seen such headcount addition in the last two years. As the company has seen dip in headcount in earlier quarters, they are kind of ramping up now,” said an industry source in the HR industry.

Last month, Cognizant management has indicated about the hiring momentum in coming months.

“So, we hired 20,000 school graduates. We think when the next wave comes, we have more people inside even before we can start to hire. Nearly 14,000 associates have returned to the company. We are a hiring magnet. Right now, I have the ability to hire 20,000 laterals per quarter. I am not only preparing for a slow velocity market, but preparing for a high velocity market if it happens at any point of time,” Cognizant CEO, Ravi Kumar said during the investors’ day last month.

Sources added that most of this hiring in India is happening for experienced people. “This is a lateral recruitment drive. So, engineers with 6-8 years of experience are being sought after for various positions,” the person said. Notably, the US-headquartered company saw its headcount falling in the December quarter. In Q4, the Teaneck-based firm’s employee count was down 10,700 year-on-year basis, while it was down 3,300 from the previous quarter.

“As we look forward, we feel that we will add headcount as we need to grow and as we grow during the course of 2025. And that’s what is at play and nothing beyond that from that standpoint,” Chief Financial Officer of Cognizant, Jatin Dalal has said during the earnings.

Meanwhile, sources in the know said that Accenture is also hiring in small numbers in India in recent months.

“Most of the hiring is happening for deploying resources in projects that have been won in recent months. It is true that while some IT firms are losing contracts, some others are winning,” the person added. Among US firms, IBM is reportedly shifting several job roles from the US to India. While several global firms are hiring at this point of time, Indian IT firms including mid-tier ones are only recruiting on need basis. “Picture will be clear after the Q4FY25 results, how hiring is going to pan out in coming quarters,” said another industry source.