Infosys, which recorded an unprecedented hiring spree in 2022, is now grappling with delays in onboarding over 500 freshers, many of whom have been waiting for more than two years, sources familiar with the matter told FE.
Notably, the majority of those waiting for their joining dates are for the role of ‘system engineer,’ a position increasingly being automated due to advancements in artificial intelligence.
“I am from Telangana and I am a fresher, waiting for my onboarding for over two years. My joining has been extended twice, but Infosys has not provided me with a new joining date. Due to this, I missed offers from other companies and now I am jobless,” said Madhav (name changed), a fresher awaiting his joining date.
Further complicating matters, Infosys has been sending templated responses to individuals inquiring about their joining dates. Some have not received any response at all.
“These are some contact numbers, but no one replies to us. They are hiring freshers but not onboarding the remaining candidates who are left out,” another fresher said. Similarly, another fresher stated, “We graduated in 2023, and till now they haven’t onboarded anyone. The only response from their side is that they honour each and every offer”.
The latest communication from Infosys to one candidate, as of last week, stated: “Please note that new date of joining allocation will be done based on the business requirements, and also as of now we do not have any update on the new DOJs in the coming months,” said Somashekar S from the HR onboarding team, in an email seen and verified by FE.
When contacted, an Infosys spokesperson told Fe, “Infosys is honoring all the offers that it has made. Entry-level hiring is a key driver for Infosys to build talent for the future. As onboarding is always aligned with client requirements, we spread the joining dates of various batches to align with changes in project schedules and to ensure employees have access to the right training”.
In 2022, Infosys hired over 50,000 freshers. However, the surge in recruitment was met with unforeseen challenges, such as slowdown in IT spending due to high interest rates and banking failures in the western countries, in aligning onboarding schedules with fluctuating client needs and project demands.
The issue of delayed onboarding is not isolated to Infosys alone. It is a widespread problem across the IT industry. Many IT companies have faced similar challenges, with onboarding schedules frequently disrupted due to demand shifts. As a result, numerous freshers have experienced extended waiting periods before they can start their roles.
Role of Automation
Interestingly, majority of those waiting for their joining dates are for the role of ‘system engineer,’ which is one of the position that is increasingly being automated due to advancements in AI.
Union Involvement
In June 2024, the Pune-based union for IT professionals, Nascent Information Technology Employees Senate (NITES), filed a request with the ministry of labour & employment to investigate Infosys’ repeated delays in onboarding over 2,000 campus recruits. NITES claimed that these delays have persisted for more than two years, causing hardship for the affected employees.
This is not the first time an IT company has delayed onboarding freshers. Last year, the ministry of labour and employment of Maharashtra issued a notice to Tata Consultancy Services (TCS) over a complaint of delaying the onboarding of 200 lateral recruits, also filed by NITES.
Future Hiring Plans
Despite these delays, Infosys announced in their post-June quarter earnings press conference that the company plans to hire between 15,000 to 20,000 freshers in fiscal year 2025.
“As we start seeing growth, we will look at hiring. We are looking at hiring 15,000 to 20,000 freshers this year, depending on how we see it,” said Jayesh Sanghrajka, chief financialoOfficer at Infosys in the press conference.
The company hired 11,900 freshers in fiscal year 2024, a significant drop from the over 50,000 freshers recruited the previous year.
Infosys reported a fall in its headcount for the sixth-straight quarter in April-June. The headcount fell by 1,908 in the quarter ended June, standing at 315,332, down from 336,294 in the previous quarter. On a year-on-year basis, headcount fell by 20,962. The company saw a net reduction of 5,423 employees in the March quarter.
Sanghrajka said: “Over the last multiple quarters, we have moved to an agile hiring base. We hire freshers from on and off the campus. This quarter we had a 2000-person net decline, which was lower than the previous quarters”.
The attrition rate for the June quarter on a last twelve-month basis saw a marginal increase to 12.7% from 12.6% in the previous quarter. “Our utilisation is already at 85%, so we have little headroom left. As we start seeing growth, we will look at hiring,” Sanghrajka added.