High Attrition In IT Industry: TCS, Infosys, HCL Hired Record 200,000 Employees In Last 12 Months!
Top three IT companies in India – TCS, Infosys and HCL Tech have employed an additional 1.97 lakh employees for the financial year 2022. The companies have also added 2.08 lakh freshers for the year, and will be taking in 1.35 lakh hires from campuses in the financial year of 2022.
This comes on the back of rising attrition even as demand continues to rise. Also, with lateral talents being a huge cost to companies, they are bridging the demand-supply gap by hiring more freshers.
As per the experts and executives, attrition is likely to increase even more before it plateaus in the second half this financial year.
Rising attrition
The rising attrition rate has been a big concern for IT companies.
TCS attrition rose to 17.4% in the March 2022 quarter from 8.6% in the beginning of the year and 11.9% attrition in the December 2021 quarter. Infosys’s attrition was 27.7% in the March 2022 quarter, which is an increase from 13.9% in the beginning of the year.
In case of HCL Tech, attrition was 11.8% at the beginning of the year and it rose up to 21.8% in the March 2022 quarter. Rajesh Gopinathan, chief executive of TCS, stated that the attrition is likely to get worse before it plateaus.
As per the Infosys finance chief Nilanjan Roy, attrition should come down in the next year as more freshers will join the workforce.
Talent is resulting in IT firms hiring more freshers in 2022, a trend that is likely to continue in 2023. TCS, Infosys and HCL Tech employed 103546, 54396 and 39900 new people the last fiscal, respectively.
Fresher hiring
The top three IT firms consistently increased their fresher supply from their initial estimates. For example, TCS and Infosys hired 100,000 and 85,000 respectively whereas their initial estimates were 40,000 and 26,000 at the beginning of the fiscal year.
For HCL Tech, the 23,000 freshers the firm hired was a huge increase from the 12,000 freshers hired in the year before.
In 2023, these companies will be hiring 1.35 lakh students from campuses, and this number may also rise.
In case of HCL Tech, apart from increasing the fresher employees to 45,000 in 2023, the company is also tapping into talents in other regions. It also expects the talent situation to stabilize by the second half of 2023.
During the earnings call on 21st April, C Vijayakumar, chief executive of HCL Tech, stated that the company is also looking to tap the US and Asia Pacific for talents apart from India.
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