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Indian IT giants report dwindling workforce amidst sector slowdown
According to annual reports of these companies, during the financial year 2023-2024, TCS, Infosys, and Wipro experienced declines of 13,249 employees, 25,994 employees, and 24,516 employees, respectively.
Official logo of TCS, Infosys and Wipro /
India's IT giants Tata Consultancy Services (TCS), Infosys, and Wipro have witnessed declines in their headcounts for the first time in a decade.
According to annual reports of these companies, during the financial year 2023-2024, TCS, Infosys, and Wipro experienced declines of 13,249 employees, 25,994 employees, and 24,516 employees, respectively.
This notable downturn comes amidst a broader slowdown across the tech, consulting, and other services sectors. The decline in headcounts can be attributed to various factors, including the reduction in discretionary tech spending following the collapse of the Silicon Valley Bank in the US.
Consequently, ongoing tech projects faced suspension, leading to associates being benched and companies opting to curtail hiring to mitigate costs. Contrary to the practices of global tech majors, Indian IT firms have not resorted to layoffs but have rather scaled back on hiring, keeping it below the rate of attrition.
However, this trend of muted hiring has persisted for an unusually extended period, resulting in Indian IT firms reporting net negative employee additions for four to six consecutive quarters, a phenomenon unseen in decades.
While industry body Nasscom projected a modest addition of about 60,000 jobs in the tech industry for FY’24, marking an 80 percent decrease from the previous year, the actual figures have fallen short of expectations.
Both TCS and Infosys have indicated a cautious approach to hiring for the ongoing financial year. TCS, which traditionally stands as the largest recruiter of engineers, remains uncertain about its hiring projections.
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