In a recent update, the major Indian IT companies are causing major onboarding delay issues for freshers.
Moreover, almost 10,000 freshers who were offered jobs in the past two years have not yet been boarded by IT companies, as per the data revealed by the IT employee union Nascent Information Technology Employees Senate (NITES).
How Did This Happen?
Basically, the candidates who were offered positions in companies such as TCS, Infosys, Wipro, Zensar, and LTIMindtree have complained to the labor union about delays in onboarding, said Harpreet Singh Saluja, the President of the IT employee union,in a media report.
Further, these reported grievances involve both top-tier and mid-tier IT companies.
The delay in onboarding freshers is mainly due to business uncertainty in North America and Europe, where indications of a slowdown have made clients cautious about IT expenditures, the report added.
For instance, consider the case of IT major, Infosys, they have informed the candidates via email that their joining would depend on business needs.
Further adding that they would receive notification 3-4 weeks before their start date, as per media report.
Wipro, too, has not onboarded campus offers made to candidates two years ago.
During a recent earnings call, Wipro CHRO Saurabh Govil had said, “The year before last, we went to campus and made many offers. We are yet to honor those. We will finish those offers and then hire new freshers. We will induct freshers this year, but we cannot give a number as the macro environment is uncertain.”
It appears that about 3-5 percent of freshers recruited by leading IT services firms in 2022 are yet to begin their onboarding process, said Krishna Vij, the business head of IT staffing company Teamlease.
Adding, “This could be due to lack of project visibility, and employers focus on the required skill sets and job readiness of the candidates.”
Alarming Reduction In Headcount
Recently, Indian IT majors including TCS, Infosys, and Wipro announced their January-March quarter results for fiscal 2023-24 (Q4FY24).
During these releases, they have highlighted a full-year decrease in their total employee headcount for the entire fiscal.
These three software services exporters cumulatively reported a full-year decline of 63,759 in headcount numbers during the entire financial year 2023-24 (FY24).
It is noteworthy here that this is the first time since TCS was listed in 2004, a decrease in full-year headcount was reported.
In TCS, they saw a reduction of 13,249 employees during FY24, bringing the total workforce to 601,546 employees as of March 31st.
