Attrition in IT Giants Of India: Companies Are Now Less Focused At Headcount

India has always been traditionally known for its large-scale hiring in the IT sector, but the picture doesn’t seem the same anymore. Now, the IT companies reflect a focus on quality over quantity. The country’s top IT sector companies like Wipro, Infosys and Tata Consultancy Services (TCS) recently announced their quarterly results and reported a full-year decline in the employee headcount. Wherein, the head-count for Infosys significantly went down by 25,994, Wipro’s headcount declined by 24,516 and TCS saw a decline of 13,249. Collectively, all three giants reported a decline of 63,759 employee headcount in the financial year 2023-24. The major tech giants have shown similar results where the attrition rate has declined for all the companies except Wipro, which has remained flat as compared to last year. Below are some financial details based on this quarter’s report:

Possible reasons for the decline in headcount

There could be a bunch of reasons behind this sudden dip, such as changing external market dynamics and its influence on employment trends within and outside of the industry. Reports suggest that this downturn has been seen majorly due to the slowdown observed across various sectors including technology, consulting and other service industries. Big companies like Infosys have no plans for immediate on-campus recruitment as per the reports. Another important reason could be the reshaping of staffing demand due to the rise of Artificial Intelligence(AI), companies are shifting to AI-based models to get work done, both domestically and globally as well. As the operational efficiency of these companies is improving along with a tight demand environment, it does not make sense for the companies to over-hire. 

Global Capability Centres

However, there is a positive outlook coming from the Global Capability Centres(GCC) of MNCs in India. Despite the overall downturn in the economy, GCCs are expected to drive growth in the IT and BPM (business process management) sectors. These centres play a crucial role in providing specialized services to parent companies, leveraging India’s skilled workforce and cost efficiency. Amidst economic challenges, it has the potential to contribute significantly to India’s digital transformation and employment opportunities.

Conclusion: In conclusion, the recent decline in employee headcount among India’s top IT companies signals a notable shift in the industry’s approach towards talent acquisition, emphasizing efficiency and gradually adapting advanced technology.  This trend is influenced by various factors, like changing market dynamics, the impact of AI-driven models, and a slowdown across different sectors. However, amidst these challenges, the  Global Capability Centers (GCCs) of multinational corporations offer a ray of hope. These centers continue to drive growth in the IT sector along with hiring skilled employees.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.