HCL Will Hire 100% More Employees In Foreign Campuses, Nearshore Locations: Here’s The Reason Why?

HCL Tech’s CEO C Vijayakumar on Sunday asserted that the HCL expects to double the headcount over the period of next 3-5 years. The CEO also clarified that the demand has not been impacted by Europe despite Russia’s invasion of Ukraine.

As of today, the tech giant employs about 10,000 people in all its nearshore locations.

CEO told PTI that it is over the period of next 3-5 years that the number is expected to double. He said that the devised ramp up plans for the location are also going forward on track in the locations and are growing.

The tech giant does not have any centre in either Russia or Ukraine. The company operates in 20 nearshore locations which includes the like of Mexico, Toronto, Vancouver, Costa Rica, and Romania, Poland, Romania, and Bulgaria.

The CEO also stated that all the centres in the Eastern Europe continue to operate at similar capacity levels.

Demand is “Robust”, No Impact of Russia Ukraine War

Speaking of the demand, he said it stays quite robust and there has not been any impact of the ongoing Russia-Ukraine conflict on the same.

Vijayakumar, while touching the topic of expansion of new centres for FY23, said that the locations are not completely new. Some of the existing locations like Vietnam, Romania, Costa Rica, Mexico and a few in US may undergo expansion.

A robust growth of 226% yoy was posted by HCL Tech in the Q4FY22. HCL Tech posted a consolidated net profit to ?3,593 crore.

For the quarter, the revenue from the operations rose 15% yoy to ?22,597 crore.

The attrition rate in the March 2022 quarter, trailing a 12 months basis, rose to 21.9%.

HCL to Hire 45000 Freshers

During the 2022 fiscal, HCL has hired nearly 40,000 freshers and this has taken the headcount to 208,877. With a 5.6% increase sequentially, the net employee additions during the quarter were also brisk at 11,100.

From ?75,379 crore in FY21, this year the company’s revenue jumped to  ?85,651 crore. Also as against the net income of ?11,145 crore in the previous fiscal, this fiscal the income increased to ?13,499 crore.

While the revenue is expected to grow between 12% to 14% in constant currency, the company has given margin guidance between 18-20% for FY23.

For catering to the attrition as well as growing demand, the company has announced that it will hire at least 45000 freshers in the financial year FY23.

Speaking of localization, HCL Tech said that it stood 70.9% in US, 80.5% in Europe and 88.9% in the rest of the world (excluding India).