Hiring at Indian IT majors — Tata Consultancy Services (TCS), Infosys and Wipro — has jumped nearly four times in the first three quarters of the current financial year compared with the same period last year, recording a net addition of over 1.34 lakh employees.
According to data analysed by Xpheno, a specialist staffing company from Bengaluru, TCS leads the pack with over 28,000 net additions, followed by Infosys at 12,000 and Wipro at 10,000 for the December-ended quarter. While Wipro recorded the lowest quarterly net addition for the current financial year, Infosys and TCS recorded their highest net addition figures over the last three-year period.
In good news to job seekers, the net headcount addition clocked by the top three companies in October-December 2021 is 19% higher than the additions they recorded in the quarter ended September.
However, this strong net addition and job creation come on the backdrop of unprecedented attrition rates across all three players. All the three players—TCS, Infosys and Wipro recorded their highest attrition rates for the current financial year in the third quarter as—15.3%, 25.5% and 22.7%, respectively.
Kamal Karanth, co-Founder, Xpheno said, “The record high attrition rates clubbed with strong collective net headcount additions, is indicative of high demand for digital talent market at play. The supply-side constrain of experienced IT talent has created the attrition to increase once again.”
However, what is heartening is that majority of the net additions are for new roles rather than replacement hiring, which shows that the hiring numbers are supported by growth. According to Sunil C, head (specialised staffing), TeamLease Digital around 30-40% of the new additions have gone into backfill attrition, while the balance 60-70% are new requirements across the top digital skills like UI/UX, data engineering, data science, full-stack, RPA, cyber security, AI, robotics, among others.
Aditya Narayan Mishra, director and CEO, CIEL HR Services observed that the pandemic has accelerated the digitisation journey of companies worldwide giving rise to a sharp jump of projects for the IT companies increasing hiring. In addition, remote working and work-from-home have given rise to many new opportunities for people who belong to tier 2 cities, which adds to the rise in hiring numbers.
HR consultants said that this momentum will continue into the next quarter and in the coming financial year as well. A R Ramesh, director (managed & professional services), Adecco Group India said, “We expect that 2022 will continue to be a supply-driven market with certain skills commanding very high premiums.”
Sunil C of TeamLease Digital said that with the hiring momentum continuing well into the next quarter, IT companies will overachieve the overall IT employment headcount projection. “We are well poised to overachieve the overall IT employment headcount projection of 4.85 million by 8%. The contribution of contracting staffing has increased and is poised to reach 3% of the overall IT employment base in FY22,” he said.
However, consultants are divided over how long the high attrition rates will continue.
Mishra of CIEL HR said that attrition numbers should reach a steady state in the next two quarters. However, Karanth of Xpheno believes that with no tested method to arrest near-term attrition in a buoyant market, this double 15-25% attrition could well continue for at least two three more quarters, as GCCs (Global Capability Centres), IT services and product companies are fishing in the same pond for talent.