As fears of recession begin to mount in the US and Europe, two of the largest hubs for Indian information technology (IT) service providers such as Wipro, Tata Consultancy Services (TCS), and Infosys, IT analysts have predicted a slow-down in the growth of the sector.
But Begaluru-based Tata Elxsi, a design and technology subsidiary of Tata Group has signalled its plan to increase its workforce by at least 50 per cent by the end of this fiscal, which would indicate an opposite trend.
The company could add to its existing workforce of 10,000 by as much as 50 per cent by March 2023, roping in a mix of up to 15,00 experienced workers and about 3,000-3,500 freshers. Recently, the company hired 771 employees to take its headcount to a milestone of 10,000.
While a host of global firms are laying off their employees, companies like Microsoft, Lyft Inc. and Google have indicated their plans to halt the hiring process as the clouds of the pandemic still hover around, further accelerating the inflation due to political unrest between Russia and Ukraine.
The IT services industry is projected to grow by 6.7 per cent Y-o-Y in organic constant currency terms by the end of FY’22, experiencing a substantial downfall from the 10.4 per cent growth registered in FY’21.
Manoj Raghavan, CEO, Tata Elxsi, said that the company hasn’t heard of any talks of reducing the budgets from its major customers. The company, in the first quarter of FY ’22, has reported a revenue of Rs 726 crore from operations, which amounts to a 6.5 per cent QoQ growth and 30 per cent growth on YoY basis. The net profit rose to Rs 184.7 crore, registering a 15.4 per cent growth over the previous quarter and 62.9 per cent YoY.
Analysts have attributed the company’s growth to the surging demand of its niche design services used in developing electric vehicles, a segment which has witnessed robust growth in India owing to the country’s ambitious goal to go carbon neutral. The growth of IT Industry service providers’ might’ve slowed down in back of the obvious reasons but in the long marathon, the sector is meant to lead and with the auto sector blooming and experiencing progressive trends, the job vacancies catering to the sector directly or indirectly are poised to increase and freshers could reap the benefits of it.