The big boys of the Indian IT sector plan to ramp up hiring in the 2025-26 financial year (FY26), driven by green shoots in demand and signs of healthy economic growth in key Western markets.
In the October-December quarter, the big four IT companies—TCS, Infosys, HCL Technologies, and Wipro—announced their plans to add more employees in the January-March quarter and the next financial year, while some of them experienced an increase in attrition and a decline in total headcount during the quarter.
According to media reports, the Indian IT sector is expected to see an addition of over 70,000 freshers in the financial year 2025-2026.
Let's take a look at the workforce trends of the big four Indian IT companies in Q3 of FY25:
TCS headcount declined by more than 5,000 employees in Q3 of FY25. Its workforce stood at 6,07,354 as of December 31, while IT services’ attrition was 13 percent for the last 12 months. Reports suggested that TCS plans to hire 40,000 freshers from campuses this year.
Infosys added a net of 5,591 employees in Q3FY25, bringing its total headcount to 3,23,379 employees from 3,17,718 in the preceding quarter.
India's second-largest software services company reported an attrition rate of 13.7 percent, compared to 12.9 percent in the preceding September quarter and the year-ago period. According to reports, the company plans to hire 15,000 to 20,000 fresh college graduates in the financial year 2024-2025.
HCL Tech reported a marginal increase in attrition rate to 13.2 percent for Q3 FY25. It witnessed a net addition of 2,134 employees during the quarter. The total headcount at the end of December 2024 stood at 2,20,755 as against 2,24,756 in the same period last year. According to reports, the IT major has revised its fresher hiring target for FY25, lowering it to 7,000 from the earlier projection of over 10,000.
Wipro's headcount reduced by 1,157 in the December quarter of the current financial year. The company expects freshers hiring to be between 10,000-12,000 for the next financial year 2025-26 (FY26).
Experts say IT companies are going to hire more people. "We are starting to see green shoots in discretionary spending. Over the past two years, these companies have been cautious with hiring, but the landscape is changing. With new projects on the horizon, there’s now a growing demand for specialized skill sets," said Sumit Pokharna of Kotak Securities.
Pokharna said while there is still some uncertainty surrounding US policies, the overall situation shows promise as political uncertainties in the US have eased, leading to a modest increase in discretionary spending by BFSI clients. The BFSI sector remains a critical revenue driver for Indian IT companies, contributing a significant share of their business.
Experts anticipate the IT sector will benefit from stronger growth in the US and an improved outlook for the financial sector, which should contribute to better revenue and profitability.
Anil Rego of Right Horizons pointed out that demand for Generative AI-based solutions is anticipated to rise as these technologies offer substantial productivity benefits for clients across various industries. Cloud-related projects continue to dominate the deal pipeline.
"We believe selective opportunities with a healthy executable order book in the segment are compelling," said Rego.
(By arrangement with livemint.com)
