In a significant shift, three major players in India's IT industry, TCS, Infosys, and Wipro, have witnessed a substantial decrease in their combined workforce by almost 64,000 employees in the financial year ending in March.
The outlook for the current fiscal year also appears bleak, with Infosys projecting a modest revenue growth of 1% to 3% for the entire year, while Wipro anticipates a potential revenue decline of 1.5% in the June quarter, with a slim chance of a 0.5% increase. These developments raise concerns for engineering graduates seeking opportunities in the sector.
Peter Bendor-Samuel, CEO of IT consulting firm Everest Group, told TOI that the reduction in headcount is a result of the industry's corrective measures following the excessive hiring spree during the Covid pandemic and the ongoing contraction in demand. While the US economy remains robust, TCS CEO K Krithivasan notes that US enterprises are apprehensive about a possible economic slowdown or recession, impacting their IT investment decisions.
Saurabh Govil, Wipro's chief of HR, has attributed the decline in headcount to both the demand environment and improved operational efficiency, necessitating fewer personnel. Similarly, Infosys CFO Jayesh Sanghrajka pointed to shifting demand dynamics over the past year as a contributing factor.
Phil Fersht, CEO of US-based IT advisory HfS Research, adds another dimension, highlighting the role of Gen AI in reshaping IT staffing demands. He mentions a major US enterprise reducing its IT workforce by leveraging large language models for application testing, potentially eliminating a significant portion of routine-based testing and coding roles in the coming years.
Despite these challenges, there is a glimmer of hope as global capability centers (GCCs) of multinational corporations continue to expand their presence in India, contributing to employment opportunities in the tech sector. The emergence of new GCCs in the country has been a significant driver of hiring in the industry, a trend that is expected to persist in the coming year.
The outlook for the current fiscal year also appears bleak, with Infosys projecting a modest revenue growth of 1% to 3% for the entire year, while Wipro anticipates a potential revenue decline of 1.5% in the June quarter, with a slim chance of a 0.5% increase. These developments raise concerns for engineering graduates seeking opportunities in the sector.
Peter Bendor-Samuel, CEO of IT consulting firm Everest Group, told TOI that the reduction in headcount is a result of the industry's corrective measures following the excessive hiring spree during the Covid pandemic and the ongoing contraction in demand. While the US economy remains robust, TCS CEO K Krithivasan notes that US enterprises are apprehensive about a possible economic slowdown or recession, impacting their IT investment decisions.
Saurabh Govil, Wipro's chief of HR, has attributed the decline in headcount to both the demand environment and improved operational efficiency, necessitating fewer personnel. Similarly, Infosys CFO Jayesh Sanghrajka pointed to shifting demand dynamics over the past year as a contributing factor.
Phil Fersht, CEO of US-based IT advisory HfS Research, adds another dimension, highlighting the role of Gen AI in reshaping IT staffing demands. He mentions a major US enterprise reducing its IT workforce by leveraging large language models for application testing, potentially eliminating a significant portion of routine-based testing and coding roles in the coming years.
Despite these challenges, there is a glimmer of hope as global capability centers (GCCs) of multinational corporations continue to expand their presence in India, contributing to employment opportunities in the tech sector. The emergence of new GCCs in the country has been a significant driver of hiring in the industry, a trend that is expected to persist in the coming year.
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