In the financial year ending March, 3 major Indian IT players, TCS, Infosys, and Wipro, have reported a massive decrease in their combined workforce by almost 64,000 employees.
IT Sector Braces for Slowdown
The outlook for the current fiscal year also seems to be bleak with Infosys projecting a modest revenue growth of 1% to 3% for the entire year, whereas Wipro anticipating a potential revenue decline of 1.5% in the June quarter, with a slim chance of a 0.5% increase.
Though it is troublesome for the employees who are already working in the firm and in the sector, but the impact is highest for those engineering graduates who are seeking opportunities in the sector.
CEO of Everest Group, Peter Bendor-Samuel said that there is a reduction in the headcount to make up as the corrective measures following the excessive hiring spree during the Covid pandemic and the ongoing contraction in demand.
TCS CEO, K Krithivasan said that though the US economy is robust, but still the US enterprises are apprehensive about a possible economic slowdown or recession, impacting their IT investment decisions.
CHRO of Wipro, Saurabh Govil said that the headcount reduction can be attributed to both the demand environment and improved operational efficiency, necessitating fewer personnel.
On the similar lines, CFO of Infosys, Jayesh Sanghrajka said that the shifting demand dynamics over the past year is one of the most important contributing factor to headcount slashing.
Large Language Models May Disrupt Testing Roles, But Indian Tech Sector Still Thrives on Back of GCCs
CEO of US-based IT advisory HfS Research, Phil Fersht further added another dimension to the same and highlighted the role of Gen AI in reshaping IT staffing demands.
He also mentioned that one of the major US enterprises is reducing its IT workforce by leveraging large language models for application testing. This could potentially disrupt and eliminate a significant portion of routine-based testing and coding roles in the coming years.
Despite the global challenges, there is a glimmer of hope and happiness since the global capability centres (GCCs) of MNCs continue to expand their presence in India, hence contributing to employment opportunities in the tech sector.
The emergence of the new GCCs in the country has been a significant driver of hiring in the industry. Similar trend is expected to persist in the coming year.
