IT companies to hire 20% less people in next financial year: Report

Indian IT companies may hire up to 20 per cent fewer people in campus placements and entry-level hiring in the next financial year (FY24). On the back of the looming fears of a recession in the US and Europe, IT companies have already slowed down hirings and the onboarding process, a report in Mint stated. 

Despite strong indicators in the software market, Indian tech companies have been facing high attrition and narrowing margins. Its impact is most likely to be faced during the hiring of freshers, the report added. 

In FY23, Infosys is expected to hire 50,000 people from college campuses. Wipro and TCS are likely to hire 30,000 and 40,000 people, respectively. Tech Mahindra Ltd will recruit 15,000 and HCL Technologies Ltd is expected to hire 45,000, Mint said. 

Recently, reports have also emerged that many people who were sent offer letters as much as six months ago have not yet received a joining date. Many of these candidates took to social media to raise the issue.

The job offers were made before February 2022, when economic activity was gaining a footing post several waves of the Covid-19 pandemic. However, the Russia-Ukraine war has impacted inflation and exacerbated supply chain issues. 

In the initial phase of the pandemic, companies worked hard to meet the digitisation needs. This led to more hirings and soaring salaries. 

Now, with the lockdown restrictions being removed, companies are waiting to deploy the senior staff in other projects for the company's profitability. 

"In FY22, about 470,000 employees were onboarded in the IT and IT-enabled services sector. In FY23, we estimate 350,000-370,000, but in FY24, if the recession continues, the numbers will drop. But at best, it will be similar to FY23," Saran Balasundaram, founder of the tech recruitment firm, HanDigital told Mint.