India’s IT Services Industry Takes a Hit as Infosys and Wipro Refrain From Hiring Freshers This Year
The Indian IT services industry, a crucial driver of the country’s economy, is currently facing a slowdown as two of the top players, Infosys and Wipro, are not hiring freshers this year. The industry, which has been growing rapidly over the past few years, has been hit by a combination of factors, including excess hiring in the previous year, continued economic uncertainties, and a high bench due to earlier hiring.
According to sources, Infosys and Wipro are yet to hit the campus trail to give offers to students who graduate in the academic year 2023. This delay has put students who are set to graduate this year in a tight spot as many companies are yet to complete hiring from the 2022 batch.
“The campus placement season begins in August-September. But many Tier-I companies are yet to come for placement. Infosys generally comes by November-December, but it’s February and it has not yet told us anything,” said the director (placements) at an engineering institute in the South.
Anshuman Das, CEO and co-founder of Careernet, said: “We are expecting CY23 hiring to be subdued. We see a dip of 50 per cent in terms of numbers over the previous year.”
The softness in hiring has started to show in the Q3FY23 results, with TCS reporting a reduction in headcount growth, and Infosys seeing a soft addition. In Q3, Infosys added only 1,627 employees, compared to Q3FY22 when it added 54,778 employees.
The industry is hoping that demand will pick up in the second half (October-December) of CY23, which is when placements for students who will graduate in the academic year 2024 will begin. However, for any meaningful placements to happen for this batch, the process has to be over before they begin for academic year 2024 students.
Industry experts say that the IT hiring was not as strong as it was in 2022 due to high bench IT firms have due to earlier hiring. Moreover, companies may want to take students who are fresh out of the campus on board rather than those who have been waiting.
Overall, the Indian IT services industry is facing challenging times, and it remains to be seen how Infosys and Wipro’s decision to refrain from hiring freshers this year will impact the industry and the country’s economy as a whole.