India’s top software services companies – TCS, Infosys, HCL Tech, Wipro and Tech Mahindra – have together hired 57% more employees in the first quarter of the ongoing fiscal year compared to the year-ago period, in likely green shoots for IT sector employment.
The top five have hired more than 27,300 employees, from a net addition of 17,383 in the same period last year.
While TCS was the top recruiter, hiring 12,356 in the first quarter, its highest in five years, Infosys took only 906 people on board.
During the corresponding period, the Bengaluru-based company had seen net hiring of 5,798 employees.
The companies also made more campus offers this year, as they seek to build a bench anticipating growing demand for digital services from clients globally.
TCS has made more than 30,000 offers for the entire year, while Wipro made more offers in the quarter than it did in the whole of last year.India’s $177 billion software services industry has for long created tens of thousands of jobs every quarter. The emergence of digital technologies such as artificial intelligence and automation, however, has meant use of more technology to solve business problems, reducing demand for large groups of software engineers.
Growth at the five companies, which hold a large share of the revenue of the Indian software services industry, has slowed in the past six to eight quarters, as they focused on investment in new-age technology to meet the changing demand from clients. The challenging phase seems to be over now and IT players could grow quarter on quarter, analysts said. “The disturbing phase of the IT sector is behind us. Essentially, they have chalked out the future now and the hiring numbers are a reflection,” said Rituparna Chakraborty, cofounder, Teamlease Services and president, Indian Staffing Federation.
The hiring numbers will not be as exponential as in the early days, “but we can anticipate net growth quarter on quarter and that should not be a surprise anymore,” she said.
Software testing work, which is a mundane task, is now being automated across many service delivery processes and the companies have created infrastructure for such capabilities in the past two years. Investments in new-age technology have started paying off as Infosys, HCL Tech and TCS improved metrics and appear poised for higher growth.
The Indian IT industry has also significantly increased local hiring in key markets such as the United States and Europe. Infosys said it had hired nearly 12,000 onshore workers, including 10,000 people in the US.