During Q2 of FY24, a surprising development unfolded as major Indian IT firms experienced a hiring slowdown. Giants of the industry such as Tata Consultancy Services (TCS), Infosys, and HCL Tech witnessed a noteworthy decline in their workforce numbers. This shift not only mirrors the shifting dynamics of the industry but also hints at possible shifts in their recruitment approaches.
TCS, a cornerstone of the Indian IT landscape, recorded a net decline of 6,333 employees in the second quarter. This dip is attributed to the company’s strategic recalibration of its hiring targets. Milind Lakkad, Chief Human Resources Officer (CHRO) of TCS, emphasized the success of their approach in onboarding and training bright freshers. This dual investment not only bolsters productivity but also contributes to lower attrition rates.
Infosys reported a sequential drop of 7,530 employees in its headcount. The company currently boasts a workforce of 3,28,764 employees, down from 3,36,294 in the preceding quarter. CFO Nilanjan Roy noted that Infosys maintains a substantial bench size, leading to a temporary slowdown in hiring activities. This decision stems from the company’s forward-thinking approach, ensuring that hiring aligns closely with project demands and resource requirements.
HCLTech, mirroring its industry counterparts, experienced a reduction of 2,299 employees in Q2 FY24. This marks the second consecutive quarter of headcount decline for the company. CEO and MD C Vijayakumar clarified that this reduction was deliberate, as many freshers hired in the past 18 months were now prepared for active project deployment. This strategic move confirms resources are optimally leveraged and synchronized with project needs.
The collective data underscores a noticeable slowdown in the hiring activities of these three major IT companies. In the same quarter of the previous year, TCS, Infosys, and HCLTech collectively hired 28,254 employees. However, in September 2023, the combined net employee addition stood at -16,162, signaling a significant shift in the hiring landscape.
The decrease in hiring activities across these IT giants suggests a shift towards a more refined and targeted recruitment approach. Companies are focusing on maximizing the use of their existing talent pool and particularly freshers, who have been heavily invested in terms of training and development. This shift may also reflect a broader industry trend of aligning workforce capacity with actual demand, rather than pursuing aggressive mass recruitment drives.
The Q2 FY24 results of TCS, Infosys, and HCLTech indicate a strategic recalibration in hiring practices. These industry leaders are prioritizing productivity and project outcomes by optimizing their existing talent pools. This shift not only showcases adaptability but also emphasizes the need for a flexible approach to HR management in a rapidly evolving industry.