Despite 100% Salary Hike, Hundreds Of Senior IT Employees Refuse Offers For These Profiles
IT companies are drawing up robust hiring plans on a trot, as digital deals continue to flow in and customer projects are ramped up.
India’s largest information technology (IT) service providers Tata Consultancy Services (TCS), Infosys, and Wipro are set to welcome more than 1 lakh freshers in this fiscal year as claimed by the firms in their respective quarterly earnings update.
TCS, Infosys, Wipro Will Hire 100,000 Freshers From Indian Colleges
Cognizant said in July it planned to hire 30,000 freshers, as well as 100,000 laterals this year. The latter translates to onboarding nearly 300 experienced professionals every day.
TCS will be hiring over 40,000 freshers from campuses in India in the fiscal year 2021-22. Infosys will hire about 35,000 engineering graduates from colleges globally this year.
Infosys had a total employee base of 2.67 lakh at the end of the June quarter, as compared to 2.59 lakh in the March quarter.
Wipro’s IT services workforce surpassed 200,000, with a total headcount of 209,890, according to the company’s first-quarter update. More than 10,000 workers were hired laterally in the first quarter, with only about 2,000 freshers onboarded.
The onboarding of 6,000 freshers in the second quarter would be the highest ever by Wipro, The company will roll out over 30,000 offer letters this year for freshers to join in FY23. Of the 30,000 offers, 22,000 freshers are expected to join.
“Intent to hire and able to hire are two different things. To onboard about 400 laterals a day, you need to make offers to about 700 people a day, as most IT services enterprises have a drop out ratio of more than 40%,”
“But even with that capability, this is a challenging year to hire laterals for sure. If the mix is 75:25 between freshers and laterals, then it’s feasible,”
Kamal Karanth, co-founder of specialist staffing firm Xpheno.
Offer Acceptance Rate At IT Services Companies
Acceptance rates for offers have dropped severely. According to Xpheno data, the offer acceptance rate for professions such as full-stack engineer, data engineer, data scientist, and DevOps engineers has fallen to around 45 per cent, down from over 80 per cent.
Saravanan Balasundaram, CEO of talent consultancy firm Han Digital claims that corporations are using special approvals to make bigger pay offers more quickly, giving individuals less time to look for other opportunities.
“Some IT firms are willing to offer bonuses for early joining and are locking in candidates at mid-level roles,” he added.
Cloud Based Job Offers
Sriram Rajagopal, the managing partner of talent solutions firm Diamondpick, said there has been an increase of 100% in salaries for critical roles in the cloud.
“Among our recent recruits, about 100 didn’t accept the offer and when we ran a survey, data showed that these specialized roles got a 94% increase in salaries from their current compensation. There are outliers who could get more,” he said.