The major Indian IT companies, TCS, Infosys, HCL Technologies, and Wipro, plan to increase hiring in FY26 due to improved demand and economic growth in key markets. Despite some fluctuations in headcount and rising attrition rates during the December quarter, it is projected that over 70,000 fresh graduates will be hired in FY2025-2026, highlighting a positive outlook for the sector.
The leading firms in the Indian IT sector, namely TCS, Infosys, HCL Technologies, and Wipro, are preparing to increase their workforce in the forthcoming financial year (FY26) due to rising demand and improving economic conditions in critical Western markets. This trend follows some variations in headcount during the latest December quarter, highlighted by an uptick in attrition rates. Reports indicate that the sector is set to hire over 70,000 fresh graduates in FY2025-2026.
In the third quarter of FY25, TCS reported a decline of over 5,000 employees, with a total headcount of 607,354 as of December 31. The firm also noted an attrition rate of 13 percent over the past year and plans to recruit 40,000 fresh graduates from campuses. Conversely, Infosys saw a net addition of 5,591 employees, bringing its total to 323,379, alongside an increase in attrition to 13.7 percent.
HCL Technologies experienced a slight rise in its attrition rate to 13.2 percent, while it gained 2,134 employees compared to the previous year, totaling 220,755. This company has reduced its fresher hiring target for FY25 to 7,000, down from over 10,000. On the other hand, Wipro’s headcount fell by 1,157 in the same quarter, with expectations to hire between 10,000 and 12,000 freshers for FY26.
Experts suggest that the increased hiring is indicative of renewed discretionary spending following two cautious years. Sumit Pokharna, Vice President of fundamental research at Kotak Securities, noted, “We are starting to see green shoots in discretionary spending… With new projects on the horizon, there’s now a growing demand for specialized skill sets.”
Political uncertainties in the US have diminished after recent elections, which has encouraged a modest growth in discretionary spending, particularly in the Banking, Financial Services, and Insurance (BFSI) sector. Anil Rego of Right Horizons anticipates heightened demand for Generative AI-based solutions driving productivity across various industries.
Moreover, cloud-related projects remain prevalent in the deal pipeline. The overall outlook for the IT sector appears favorable, bolstered by expectations of stronger growth in the US economy and better prospects for the financial sector, enhancing revenue and profitability.
In summary, the major Indian IT firms are poised for significant hiring in response to improved economic conditions and rising demand within their industries. While some firms have experienced declines in headcount and increased attrition rates, the forecast remains optimistic for new opportunities, particularly with demands for specialized skill sets and AI-based technologies. The sector is anticipated to benefit from a recovering global economy, particularly in the BFSI sector, leading to enhanced growth and revenues.
Original Source: www.livemint.com
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