Major Indian IT Firms Plan To Hire 450,000 Employees In 2nd Half of FY22 With Focus On Skill Building

New Delhi: As the coronavirus cases have declined and lockdown restrictions have been lifted, employees have returned to offices. With these developments, the Indian information technology services industries are planning to hire around 450,000 people in the second half of financial year 2022 (H2FY22), according to UnearthInsight, a metrics benchmarking and market intelligence firm.Also Read – TCS Makes Big Announcement For Employees, Says They Will Spend Only 25% Of Time In Office By 2025

As per the UnearthInsight, these recruitments are largely laterals/experienced employees, though the intake of freshers is bit more than what it was last year. Also Read – Work From Home Ends For TCS Employees: This is How IT Major is Planning to Bring Its Employees Back to Office

With higher attrition of 17-19 per cent in the second half of the year, the IT services industry is likely to have a net employee addition of about 175,000. As per the firm’s hiring estimation, over 2,50,000 freshers have been added so far in FY22 by more than 30 domestic and multinational tech firms in the country. Also Read – Mega Hiring! TCS, Infosys, Wipro, IT Companies Likely To Recruit Over 1 Lakh Freshers This Year

In the recruitment drive for FY22, the top five companies which are likely to hire more freshers include Tata Consultancy Services, Cognizant, Infosys, Tech Mahindra and HCL Technologies

As per the report, in FY22, Tata Consultancy Services is likely to hire 77,000 freshers (43,000 hired in H1FY22 plus 34,000 in H2FY22); Cognizant said it will hire 45,000 freshers; Infosys (45,000 freshers); Tech Mahindra, (15,000 freshers); and HCL Technologies (22,000 in FY22 and 30,000 in FY23).

Focus on upskilling programs: As per the report, most of the Indian IT firms are largely focusing on upskilling programs both in India and global markets. TCS has leveraged multiple learning tools on iON learning platform and initiatives for reskilling its global workforce, and 90% of Infosys employees have learned through LEX, a platform that helps them reskill and upskill to meet the evolving requirements of the organizations.

However, UnearthInsight expects the half of FY22 attrition to be higher at 17-19 per cent over the last 12 months (LTM) while FY23 likely to be 16-18 per cent. The report said the fresher addition across the next two quarters will likely to help IT services firms control overall attrition in the industry.

The UnearthInsight report further stated that the rise in industry attrition is largely driven by the supply-side challenges which are transient and are expected to normalize from FY23.

Cloud competition among IT giants: Unearthinsight further estimates $80 billion to $100 billion in cloud services revenue for the IT services industry by 2030. This is being led by companies such as Accenture which recorded very strong double-digit growth in Cloud Industry X and Security.

Infosys aggressively realigned strategic focus to scale digital transformation projects over the last two years, with significant investments in sales, increased large deal participation, UnearthInsight said.

In the meantime, HCL Technologies expects to recruit 10,000 people to its AWS practice called Amazon Web Services (AWS) Business Unit, and Wipro has launched Full Stride Cloud Services which integrates their consulting and technology capabilities along with Cloud Studio-based assets.

Tech Mahindra also foresees high adoption of cloud as one of its pillars of growth and continues to focus on providing holistic cloud strategy to drive the overall customer experience journey. UnearthInsight feels the company should focus on extending its partnership with cloud practices of global players like Amazon, Google and few niche players

UnearthInsight said TCS, Infosys and HCL will continue to expand US, Southeast Asia and India while Algonomy (Earlier Manthan), 3i, Persistent, Ramco, Financial Technology, Decimal Technologies and many private Tier II and Tier III firms are expected to generate larger percentage of revenues from products/platforms in global markets.