It’s a great time to be an Indian IT professional or a fresh graduate, as tech companies are offering generous pay increases, lucrative incentives, and going on a hiring spree as the corporate sector’s digitization has fuelled a huge demand for IT services and generated robust deal pipelines.
Due to the growing demand for digital services as more companies digitize their operations, India’s top IT majors TCS, Infosys, and Wipro added 45 percent more employees in FY21 compared to the previous year.
The hiring spree, as well as pay increases and incentives to keep employees, will continue. TCS, Infosys, Wipro, and HCL Tech may recruit nearly 1 lakh freshers this year to meet increased demand resulting from strong deal pipelines.
TCS, one of the world’s most valuable IT firms, announced that it would employ 40,000 freshers in FY 22, bringing its total headcount to over 5 lakh. This fiscal year, Infosys and HCL Tech have announced that they would employ 26,000 and 12,000 people, respectively.
Wipro’s Chief Human Resources Officer, Saurabh Govil, stated that the company would recruit more freshers in FY22 than the previous year, though he did not provide precise figures. In FY21, the company hired almost 9,000 new employees.
In order to satisfy the demand, these companies will also recruit more seasoned professionals during the year.
A few main factors are behind the recruiting frenzy.
The momentum of demand and deals
Thierry Delaporte, Wipro’s CEO, said during the company’s earnings call on April 15 that the industry is experiencing a new wave of market momentum. This growth is being fueled by a greater emphasis on digital, as businesses around the world invest in new-age technologies like the cloud to accelerate their digital transformation.
This has resulted in a rise in big transactions, which have become the norm. This is expected to continue, according to the executives. In Q4 FY21, Wipro, for example, signed 12 major contracts worth a total of $1.4 billion.
TCS closed deals worth a record $9.2 billion in the fourth quarter of FY21, totaling more than $31.5 billion for the fiscal year. Infosys, a competitor, won a total of $14 billion in business, with over 60% of it coming from new business. HCL Tech has yet to release its financial statements for FY21 and the fourth quarter.
Skills in a specific field
All of these factors are driving up demand for talent, especially for data analysts, full-stack developers, and cloud specialists. Accenture alone has over 20,000 job openings in India for a variety of positions.
“(We are) recruiting for in-demand skills in areas such as digital, cloud, security, data, and AI, as well as platform and other core skills,” Accenture said in a statement to Diginews.live. Professionals with cloud skills, such as those needed for cloud migration, native cloud creation, data re-engineering, deployment, and maintenance across multi-cloud environments, are in high demand.”
Aside from cloud, data science, data engineering, data visualisation, DevOps, Machine Learning, Natural Language Processing (NLP), Virtual Agents, and Computer Vision are becoming increasingly relevant. According to Accenture, “another main requirement is security expertise to sustain the rapid speed of cloud implementations, cybersecurity services, cyber-defence services, and managed security operations.” The business employs 5.37 lakh people worldwide, with 2 lakh in India.
Wage inflation and attrition are on the rise.
The IT industry is bracing for high attrition rates and wage inflation as hundreds of jobs become available.
Wage inflation is a major concern, according to industry analysts Diginews.live talked to earlier this year, with workers earning 20-40% more than they did in 2019.
TCS’s CFO, V Ramakrishnan, said the company expects attrition to rise from its all-time low of 7.2 percent. Infosys’ COO, UB Pravin Rao, said the company’s 15% attrition rate in Q4 is likely to continue in the next two quarters. Wipro, according to Govil, expects a higher increase in attrition in FY22.
What are businesses doing?
The war for talent, which has come to define FY22, is a major obstacle, and businesses are going to great lengths to keep it.
During Wipro’s earnings call on Thursday, CEO Delaporte said that the company is completely prepared to win this battle for talent, and that the company has implemented multiple retention initiatives.
Wipro workers will see another raise in June 2021, after pay increases in January 2021. Promotions are also on the way. The organisation announced bonuses for 80 percent of its employees starting in December 2020 in October 2020. Delaporte said, “We’re still rolling out skill-based incentives.”
Employees with niche expertise in new-age technology such as cybersecurity and cloud, as well as core domain skills, will receive bonuses. “These incentives are for differentiated abilities, so they are targeted,” said Saurabh Govil, Chief Human Resources Officer.
After the pay hikes it rolled out in January 2021, Infosys is considering a second round of incentives in July 2021 to reduce attrition. “Continuous learning and career development opportunities are really important to us. In the meantime, we’ll look into any intervention that may be required,” Rao added.