Tech giants TCS, Infosys and Wipro see combined headcount drop of 64,000 in FY24
By Vinaykumar Patil | First Published Apr 20, 2024, 4:19 PM ISTTCS, Infosys, and Wipro collectively reduced their workforce by 64,000 employees during the last financial year due to factors like post-pandemic adjustments and market uncertainties. Revenue projections for the current year are modest, with Infosys expecting 1-3% growth and Wipro potentially facing a 1.5% dip. The shift towards AI-driven solutions may further impact headcount.
The top three IT companies, TCS, Infosys, and Wipro, reported a substantial decline in their workforce, with a combined reduction of 64,000 employees during the financial year that concluded in March.
The downward trend in headcount seems poised to continue, as early forecasts for the current financial year paint a bleak picture. Infosys projects a modest revenue growth of 1% to 3% for the entire year, while Wipro anticipates a potential revenue dip of 1.5%, with a slim chance of a 0.5% rise in the June quarter.
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Industry experts attribute this decline in headcount to various factors, including the aftermath of excessive hiring during the COVID-19 pandemic and the ongoing contraction in demand within the industry. Peter Bendor-Samuel, CEO of Everest Group, points out that companies are pulling back on talent acquisition amid uncertain market conditions.
The concerns are not limited to the Indian market. Despite the thriving US economy, enterprises remain cautious about significant IT investments, fearing a possible slowdown or recession, as highlighted by TCS CEO K Krithivasan. Saurabh Govil, Wipro's Chief of HR, suggests that operational efficiency improvements have also contributed to the reduction in headcount, alongside the evolving demand landscape. Similarly, Infosys CFO Jayesh Sanghrajka attributes the lower headcount to changing market dynamics over the past year, reported TOI.
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However, Govil acknowledges that while the current IT services portfolio heavily relies on manpower, the long-term trend is likely to witness a shift towards AI-driven solutions, potentially impacting headcount in the future.
Amidst this scenario, there's a ray of hope for job seekers, as global capability centres (GCCs) of multinational corporations continue to hire. The emergence of new GCCs in India has been a significant contributor to tech industry hiring in recent years, a trend expected to persist in the current year as well.
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