BENGALURU: For over two decades, IT companies have been the biggest hirers of engineering and technology talent. However, amid uncertainty, IT companies are treading cautiously when it comes to workforce expansion.With increased adoption of AI and automation, there is greater focus on productivity.
The top three Indian IT firms added 1,438 employees during the March quarter, reversing a decline of 936 in headcount in the Dec quarter. TCS added 625 people, while Infosys and Wipro added 199 and 614 employees, respectively, during Q4.
However, the top five Indian IT firms saw a collective net headcount reduction of 2,587 in the Dec quarter, contrasting sharply with the Sept quarter’s addition of 15,033 employees.
IT firms are bracing for a bleak hiring forecast due to the overhang of macroeconomic headwinds reshaping demand environment, leading to a dent in the job market. Firms are proceeding with caution, stressing the current climate necessitates prudent workforce planning and cost-efficiency measures. For FY25, the combined net headcount addition of TCS, Infosys, and Wipro was 13,503 compared to a decline of 64,000 people in the previous year.
TCS EVP & CHRO Milind Lakkad said that the business environment will influence the firm’s decision on net additions. “We’ll continue to hire from campuses, and it will be similar to last year’s numbers. With respect to net additions, it depends on the overall business environment and what we eventually hire in the market,” he said.
Wipro CHRO Saurabh Govil said his company has adopted a prudent campus hiring strategy. “We burnt our fingers three years back. So, we are very conscious that we do it the right way,” he said.
Ramkumar Ramamoorthy, partner at tech growth advisory firm Catalincs, said, “In the new era of growth driven by AI, platforms, and third-party software sales, hiring metrics are increasingly losing relevance.”
Phil Fersht, CEO of US-based HfS Research, said there is considerable focus across major IT services firms to keep costs to a minimum and maximise current resources. “This hiring metric is very relevant to the changing times. The services firms are looking to incorporate current staff plus AI as opposed to the traditional model of hiring freshers and new staff to bolster growth,” he said.
India’s tech sector hired 1,26,000 people in FY25, taking the total talent base to 5.8 million. Nasscom restated that it hired 90,000 employees during the year-ago period, taking the tally to 5.6 million. This comes at a time when large IT firms are seeing a decline in headcount, and much of the net addition last year was on account of GCCs. “This is perhaps the worst environment we have known for college graduates looking for jobs.With the current economic uncertainty, this slow hiring metric will continue to be flat, and I can see it staying this way throughout 2025,” Fersht said.