11,000 Employees Resigned From TCS, Infosys, Wipro, HCL, Tech In Last 90 Days; TCS Worst Hit
For the first time ever, the top five software firms of India have seen their workforce sequentially decrease in the quarter.
The reason for this is the COVID-19 pandemic, which led to reduced hiring and cost-cutting measures implemented, therefore.
However, most of these organizations are quite positive about the scenario of hiring in the coming quarters.
Headcount At Top 5 Indian Software Companies Declined
In the last April-June quarter, the headcount at India’s largest software exporter, Tata Consultancy Services, TCS reduced by 4,786. Whereas the headcount at Infosys decreased by 3,138, Wipro’s decreased by 1082 and Tech Mahindra’s headcount declined by 1820.
In total, all these companies have observed a decline in their headcount by 10,962 employees.
The COO of Infosys, Pravin Rao said that hiring has been put on hold, but despite that, the company has recruited more than 5000 laterals across the globe. These recruits have been onboarded remotely.
He said, “For us this is something which will become part of the new normal because this pandemic could remain for some time – on and off and remote onboarding will probably be an element which will continue to remain going forward as well.”
Infosys has also reported that they will be hiring 20,000 freshers this year as well.
Tech Mahindra Blames Attrition For Decline in Headcount
Moreover, the CFO Wipro Jatin Dalal has revealed to analysts that the company has enough talent available. He said, “We always say that we will hire for revenue, so if there is a need to hire externally we will definitely look at it. But the action that we took was a very straightforward, I would say, straight forward method of transaction that when we saw the reduction in some of our revenues, some of our own employees became available for work.”
The CFO of Tech Mahindra, Manoj Bhat has revealed that the reduction in hiring had also been affected because of the attrition in the previous quarter.
The increasing recruitment of employees at these organizations shows the rate of growth for IT companies. However, a lot of factors have contributed to the slow decline of addition in headcount – the COVID-19 pandemic outbreak has led to freezing the recruitment by companies all over. Additionally, the increasing use and advancement of automation has resulted in the companies not requiring many employees to begin with.