Tech services giant Infosys reported its financial results for the April-June 2023 quarter, showing a decline in its headcount for the second consecutive quarter.
In the first quarter of the fiscal year, Infosys’ employee count decreased by 6,940, following a reduction of 3,611 employees in the previous quarter.
Infosys Shows Decline in Headcount in FY Results in April-June Quarter 2023
Despite the reduction in headcount, the attrition rate at Infosys continued to ease, falling below 20 percent to 17.3 percent for the fourth quarter. This is a positive sign for the company, as lower attrition can lead to better employee retention and stability.
The employee metrics for Infosys in this quarter align with those of its peers in the industry. While Wipro and HCL Tech reported a decline of 8,812 and 2,506 employees, respectively, Tata Consultancy Services saw an addition of 523 employees. This reflects the overall trends in the IT services sector and the impact of various factors such as demand fluctuations and organizational restructuring.
Regarding freshers’ hiring, Infosys’ CEO, Salil Parekh, indicated that the company still maintains a recruitment target for the year. However, the final outcome will depend on how the demand environment evolves and the attrition numbers in the coming months.
Parekh also highlighted the company’s focus on generative artificial intelligence (AI) projects. Infosys is actively working on 80 generative AI initiatives for its clients.
Additionally, the company has developed generative AI tools internally, specifically aimed at software development, and has provided training to 40,000 employees in this area. Such technological advancements can enhance the company’s capabilities and offerings to clients.
Infosys Reports Slow Down of Clients
However, Infosys also acknowledged that some clients may slow down or halt discretionary work in the short term. This is likely due to various factors, including global economic conditions and specific industry challenges.
In the past eight months, Infosys has experienced six major top-level departures, starting from October 2022. Among the noteworthy resignations were Vishal Salvi, the Head of Cyber Security, and Narsimha Rao, the EVP Head of Cloud and Infrastructure. Despite these departures, Parekh expressed confidence in the company’s ability to nurture and promote talent from within to drive growth and continue producing great leaders.
Regarding wages, Infosys is carefully considering the timing of hikes for its employees. This decision likely comes as the company balances its financial performance with the need to retain and motivate its workforce.
