Hiring was in high gear at India’s six major IT companies in the fiscal year ended March 31, 2022, even as companies continued to battle record levels of attrition with rising demand for computer skills. Companies hired 260,000 people during the year, a record 2.75 times the 95,000 employees hired by companies last year. The top six IT companies include – Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, L&T Infotech and L&T Technology Services.
India’s largest exporter of software services, TCS, recorded its highest quarterly net additions in the January-March quarter and in the past three years with a net addition of 35,209, a sequential increase by 6.3%. The company also recorded the highest annual net additions of 103,546 during the year. It closed the year with 592,195 employees.
However, as hiring has accelerated, high demand for skilled IT talent has also led to record levels of attrition for businesses. TCS recorded 17.4% attrition in the January-March period, its highest attrition for the current fiscal year and the last three-year period.
Similarly, the total headcount net additions for Infosys since April 2021 stood at 54,396, which was its highest annual net additions. Also during the fourth quarter, the company reported net additions of 21,948, the highest quarterly net addition for the current fiscal year and in the past three years. Growth in the workforce over the December 2021 quarter was 7.5%. Like TCS, Infosys attrition at 27.7% was the highest for the current fiscal year and in the past three years.
At Wipro, the company recorded 45,416 total headcount net additions since the start of FY22, its highest annual net additions. However, on a quarterly basis, the company’s net additions of 11,457 in the January-March period was its third-lowest quarterly net addition in FY22, but it was an increase nearly 5% on a sequential basis. Attrition at 23.8% remained the highest attrition for the current fiscal year and for the past three years.
Kamal Karanth, co-founder of Xpheno, who analyzed the data, told FE that FY22 was an unprecedented year with voluntary attrition and expansion hiring simultaneously in play. “These organizations are working at peak productivity levels, as only about 60% of the organization is stable, 40% of employees are in transition, 20-30% arrive as new hires and a similar number departs,” a- he observed.
He said the trend of high attrition and the same talent being poached from peer IT services companies means that there is a healthy demand for offshore work in India. “This year could well be a case study for new paradigms in workforce efficiency and productivity. A steady net addition of full-time employees by most major IT players means they have responded better to the talent loss situation. I can’t refuse to applaud talent acquisition teams for the remarkable feat of filling leaky buckets of talent and making them overflow!” Karant said.