BENGALURU: The $156-billion Indian IT industry, continuously referred to as the largest task writer in the organised sector, is seeing a tectonic shift in recruitment.
For the first six months of the fiscal, Cognizant, Infosys, Wipro and Tech Mahindra have all noticed their worker power in fact decline — somewhat sharply in Cognizant's case (by over five,000). TCS and HCL Technologies are the one exceptions among India's top six IT firms, however even TCS' addition is a fraction of what it did in the first six months of the former fiscal.
The headcount of all of the six firms put together dropped by four,157 in the first six months of this fiscal, in comparison to an increase of just about 60,000 in the similar duration closing 12 months.
"The industry is standing at a crossroads. The journey toward digitisation and automation provides a plethora of opportunities, but with the same token also a myriad of challenges. Hiring for some of the Indian majors has not only decelerated, but for the first time we have seen a decrease of headcount," Tom Reuner, SVP of intelligent automation and IT services at IT consulting company HfS Research, mentioned.
Several factors are at work. Automation is making hundreds of entry-level jobs redundant. Companies are making improvements to their employee-utilisation ranges, and keeping fewer people at the bench. In the traditional areas of utility construction & upkeep, and infrastructure upkeep, enlargement is down. And whilst firms want to hire people with specialized skill sets in more recent spaces similar to data science, machine studying, artificial intelligence and internetof-things, the expansion charge in those areas and the nature of the business don't necessitate large-scale hiring.
Peter Bendor Samuel of outsourcing research company Everest Group instructed TOI, "The employment picture in Indian IT is changing rapidly. The intake of new campus hires in the Indian IT industry is dramatically down and looks to continue to fall. The industry will continue to be a great place for engineers with the right skills in AI, automation, and other digital skills that are in high demand. However, for those individuals who have traditional IT skills, the picture changes dramatically."
Following Infosys' 2nd quarter results, CFO M D Ranganath mentioned the decline in headcount used to be as a result of higher utilisation and productivity improvements.
Wipro president and chief human resources officer Saurabh Govil mentioned closing month the industry has moved clear of headcountlinked enlargement. "We have improved our utilisation....We are focusing on re-training our existing people," he mentioned.
Industry body Nasscom had projected that the industry would add 1.Three-1.five lakh jobs in the present fiscal. Looks like that can at best possible be a gross hiring determine. Excluding those who voluntarily exit the industry or are requested to go, it appears that if there's some general increase in headcount in the industry, it'll be somewhat modest.
For the first six months of the fiscal, Cognizant, Infosys, Wipro and Tech Mahindra have all noticed their worker power in fact decline — somewhat sharply in Cognizant's case (by over five,000). TCS and HCL Technologies are the one exceptions among India's top six IT firms, however even TCS' addition is a fraction of what it did in the first six months of the former fiscal.
The headcount of all of the six firms put together dropped by four,157 in the first six months of this fiscal, in comparison to an increase of just about 60,000 in the similar duration closing 12 months.
"The industry is standing at a crossroads. The journey toward digitisation and automation provides a plethora of opportunities, but with the same token also a myriad of challenges. Hiring for some of the Indian majors has not only decelerated, but for the first time we have seen a decrease of headcount," Tom Reuner, SVP of intelligent automation and IT services at IT consulting company HfS Research, mentioned.
Several factors are at work. Automation is making hundreds of entry-level jobs redundant. Companies are making improvements to their employee-utilisation ranges, and keeping fewer people at the bench. In the traditional areas of utility construction & upkeep, and infrastructure upkeep, enlargement is down. And whilst firms want to hire people with specialized skill sets in more recent spaces similar to data science, machine studying, artificial intelligence and internetof-things, the expansion charge in those areas and the nature of the business don't necessitate large-scale hiring.
Peter Bendor Samuel of outsourcing research company Everest Group instructed TOI, "The employment picture in Indian IT is changing rapidly. The intake of new campus hires in the Indian IT industry is dramatically down and looks to continue to fall. The industry will continue to be a great place for engineers with the right skills in AI, automation, and other digital skills that are in high demand. However, for those individuals who have traditional IT skills, the picture changes dramatically."
Following Infosys' 2nd quarter results, CFO M D Ranganath mentioned the decline in headcount used to be as a result of higher utilisation and productivity improvements.
Wipro president and chief human resources officer Saurabh Govil mentioned closing month the industry has moved clear of headcountlinked enlargement. "We have improved our utilisation....We are focusing on re-training our existing people," he mentioned.
Industry body Nasscom had projected that the industry would add 1.Three-1.five lakh jobs in the present fiscal. Looks like that can at best possible be a gross hiring determine. Excluding those who voluntarily exit the industry or are requested to go, it appears that if there's some general increase in headcount in the industry, it'll be somewhat modest.
Major IT companies reduce employee strength
![Major IT companies reduce employee strength]()
Reviewed by Kailash
on
November 02, 2017
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