IT Sector Reports Drop In Employee Count Amid Decreasing Revenue

Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro, the Big Four of Indian IT services, reported a workforce decline of 21, 213 in the second quarter. This was primarily due to a slowdown in hiring, a focus on better utilisation and the use of the pool of trained freshers already on projects, amid growing demand uncertainty.

With the exception of HCLTech, which lost 2,299 people during the September quarter, the other three companies all had a sharp fall in employment of more than 5,000.

As of the first half of FY24, all four businesses had collectively shed 39,000 workers. Comparing this headcount to the first half of the previous fiscal year, when these organisations collectively added 81,650 individuals, there has been a considerable decline.

Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro, the Big Four of Indian IT services, reported a workforce decline of 21, 213 in the second quarter. This was primarily due to a slowdown in hiring, a focus on better utilisation and the use of the pool of trained freshers already on projects, amid growing demand uncertainty.

With the exception of HCLTech, which lost 2,299 people during the September quarter, the other three companies all had a sharp fall in employment of more than 5,000.

As of the first half of FY24, all four businesses had collectively shed 39,000 workers. Comparing this headcount to the first half of the previous fiscal year, when these organisations collectively added 81,650 individuals, there has been a considerable decline.

In the meantime, all attrition rates decreased sequentially and ranged between 14 and 16 per cent. As increasing the utilisation of the present staff continues to be a crucial lever to increase operating margins in the current business environment, IT organisations are attempting to avoid backfilling this attrition right away.