Indian IT companies cut hiring amid US, Europe recession fears: Report

Several CEOs of IT companies in India have said that companies need to be cautious amid macroeconomic uncertainties

With a possibility of a recession in the United States of America (USA) and a slowdown in Europe, the IT companies in India have reportedly cut down their hiring. According to a report by Times of India (TOI), Infosys, TCS, HCL and Wipro hired just 28,736 people in the second quarter of the current financial year (Q2FY23). It is nearly half of the hirings in the same quarter in FY22. 

Several CEOs have said that companies need to be cautious amid macroeconomic uncertainties. Wipro, according to TOI, added just 605 people in Q2FY23. 

Some freshers, that were hired earlier in the year, have stated that the companies have delayed the onboarding process. However, the companies have stated that they will honour all the offer letters. 

In the first half of FY23, HCL hired 10,339 freshers, while TCS onboarded 20,000. Wipro added 14,000 freshers. 

During the announcement of the financial results, the management of these companies said that they will continue hiring freshers and that macroeconomic factors will not impact this. 

Milind Lakkad, chief HR officer at TCS, said that 10,000 more freshers will be onboarded in the second half of FY23.

HCL CEO C Vijaykumar, on the other hand, said that they would add 30,000 freshers in FY23. Wipro CEO Thierry Delaporte said that the company has decided to "really build" their strategy to hire freshers, according to TOI. 

However, the attrition in IT companies has stayed high at around 20 per cent. HCL recorded the highest attrition at 23.8 per cent. Most companies said that the attrition has peaked.