India’s Top 5 IT firms nearly matched FY21 hiring numbers in H1 FY22
(TCS), , , and added 122,546 employees in April-September 2021. That compares an estimated 138,000 people that were onboarded in fiscal ended March 31, according to Nasscom data.
These five companies added a net 68,894 employees in the recently-concluded September quarter, compared with just 17,918 in the same period last year.
India’s software services sector is witnessing a talent crunch as the current pool of digitally skilled professionals in the country isn’t enough to meet the pandemic-induced demand for digitalisation. IT firms are in hire-or-poach mode — resulting in sky-high salaries — with several tapping even non-engineering grads to bridge the skills gap.
- TCS added a net 19,690 employees in Q2 FY22 compared to 9,864 in Q2 FY21.
- Tech Mahindra added 14,930 employees in Q2 FY22.
- Infosys, Wipro and HCL added more than 11,000 each in FY22.
Since the national lockdown in April-June last year, the Top 5 companies have added a total of 202,223 employees, according to latest quarterly earnings filings.
“We had the foresight to continue hiring in large numbers throughout the second half of last year and the first half of this year. In this fiscal, we have already onboarded 43,000 freshers, all trained on the latest technologies, while also ramping up our organic talent development initiatives and our employee engagement outreach,” TCS CFO Samir Seksaria said during an earnings call. “This has helped us overcome the supply-side challenges seen across the industry and continue to meet all our delivery commitments.”
These hiring trends are likely to sustain for the next three years, industry watchers said, with IT firms themselves anticipating a talent crunch to persist for the next 2-3 quarters at least. They are looking at new sources of talent, including onboarding non-engineers.
“We had anticipated the talent shortage and had been working on ways to deal with it,” Tech Mahindra CEO CP Gurnani told ET in a recent interaction. “In addition to reskilling our staff and hiring more and training them in future skills, the company is also ramping up hiring in Tier-II towns.”
Nasdaq-listed and India-focused Cognizant Technology Solutions Corp. said it is planning to hire 100,000 associates in 2021 to mitigate growing attrition.
To be sure, the talent crunch is an industry-wide phenomenon — affecting not just Indian IT services providers. The sector is competing with global capability centres — offshore units of multinational companies — and heavily funded startups for the same talent base.
“We have about 1,400 GCCs in India with another 800 are estimated to be added during this year itself which hire heavily,” Siva Prasad Nanduri, business head (IT staffing), TeamLease Digital. “At present, the large number of startup unicorns are also very lucrative. Employees in the 3–7-year experience level are now more open to exploring opportunities with unicorns, which is also driving attrition across the technology landscape.”