The COVID-19 pandemic may have brought gloom to the general employment prospects, but one sector that has seen the opposite trend is information technology (IT).
The rise of the work-from-home (WFH) model and the adoption of cloud and digital transformation have led to an increase in the business of IT companies in India. No wonder, hiring has been done only for IT companies in the wake of the pandemic.
In the June quarter, the top six offshore technology companies added more than 58,000 employees at the net level, an analysis by JM Financial Institutional Securities Ltd showed.
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These include Tata Consultancy Services Ltd., Infosys Ltd., Wipro Ltd., HCL Technologies Ltd., Tech Mahindra Ltd. and Cognizant Ltd.
Not only Tier-1 technology companies, Tier-2 companies are also hiring aggressively.
Management comments indicate that the demand outlook for the IT sector remains bright and broad, with a solid deal intake and a strong deal pipeline.
Analysts say this could take hiring to record highs.
“The (d) (c) Ovid crisis has reaffirmed confidence in the global distribution model as evidenced by the 200-600 basis point increase in offshore percentage of revenue across the industry. Analysts at JM Financial Institutional Securities Ltd said total hiring by Tier-I tech has not crossed FY12 levels and is set to exceed in FY22. One basis point is one-hundredth of a percentage.
Sharing similar views, analysts at Emkay Global Financial Services Ltd said: “Overall, the IT services companies in our coverage universe added approximately 182,500 employees in the last 12 months (most added in the last two quarters), which Reflects strong demand environment across the industry. “
“Considering the uptick in revenue in FY12, secular demand trends, limited scope for improvement in utilization rates and increase in new intake and training periods, we expect IT companies to exceed 200,000 in FY12 Will hire more employees, which will be the highest ever in a decade. ,” added the report.
Meanwhile, strong demand is also an indication that the sector is facing supply-side pressures, which has led to high layoffs. While companies are taking monetary measures to retain talent, their costs have gone up. Hence, to meet the demand and manage cost-side pressures, companies have expanded their hiring target for freshers.
For example, Infosys has increased the hiring target for freshers in FY12 and now wants to hire 35,000 freshers in the current fiscal, from 25,000 earlier.
Similarly, competitors like HCL Technologies have also enhanced their freshers’ recruitment plans for the year.
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