India’s three biggest IT companies have firmly put the Covid-19 pandemic behind them, if the hiring figures are any indication.
Tata Consultancy Services (TCS), Wipro and Infosys reported a sharp increase in net employee hiring during the December quarter amid strong revenue performance and record deal signing. The net hiring of employees is considered a key measure to indicate the robustness of an industry.
TCS reported a 59% increase with a net addition of 15,721 employees in the third quarter compared to the previous quarter. Net hiring of employees in the third quarter was the highest on record in a quarter, the company’s chief financial officer V Ramakrishnan said on an analyst call.
Infosys’ net hiring jumped nearly eight times in the third quarter to 9,104, while that of Wipro rose 47% to 5,065.
When the pandemic was at its peak, during the June quarter, all three companies reported negative net hires. However, all three experienced a turnaround in the September quarter.
During the December quarter, the momentum seems to have accelerated even more (see the table).
Yugal Joshi, vice president of research firm Everest Group, said that regardless of the additions coming at the back of a not-so-encouraging workforce earlier, it’s a good sign of demand visibility. . Overall, this is a good sign for the industry and likely a recovery earlier than expected, he added.
“The pandemic has prompted many clients to explore offshore outsourcing and as everyone looks to cut costs, we are finding that even high-end consulting services involve more offshore services. This will help Indian service providers in general and India-based services in particular, ”Joshi said.
The pandemic has helped create new operating models for service providers, although offshore is an important part of it. But there are more dimensions to this. Indian service providers should continue to verify their operating and delivery models, and not rely on the immediate big transactions they witness, as customers want to shift their own resources into the books of Indian systems integrators, did he declare.