Overview of Current Hiring Trends
India's leading IT companies, TCS, Infosys, and Wipro, have recently added 1,438 jobs in Q4 FY25, demonstrating a slight increase in headcount. However, this growth is accompanied by a cautious hiring approach due to ongoing global economic uncertainty, tariff-related trade tensions, and the increasing influence of automation.
Shift in Hiring Momentum
While the addition of new employees is a positive sign, it's important to note that this marks a shift from previous aggressive hiring trends. For instance, the top five Indian IT firms had reduced their workforce by 2,587 in the December quarter, contrasting sharply with a significant addition of 15,033 in the previous September quarter.
TCS led the new hires with 625, followed by Wipro with 614, and Infosys contributing 199. The cumulative net headcount addition for FY25 across these firms was 13,503, a stark contrast to a reduction of 64,000 in FY24.
Demand for Tech Roles Declines
According to staffing firms, the demand for tech talent has decreased by nearly 20% in Q4 FY25 compared to the prior quarter. Active hiring demand in IT services fell from 80,000 in February to 55,000 in March. Many companies are now prioritizing critical roles and delaying hiring decisions.
Phil Fersht, CEO of U.S.-based HfS Research, emphasizes that firms are looking to integrate current staff with AI capabilities rather than relying solely on hiring fresh talent.
Cautious Outlook from Executives
Executives from TCS and Wipro have expressed concerns about the shifting market dynamics. TCS CEO K Krithivasan noted that optimism faded in March due to project delays, while Wipro CEO Srini Pallia mentioned the company's careful approach to hiring without guaranteed deployment.
Protectionist Policies Affect Hiring
Experts warn that protectionist policies and inflation concerns in the U.S. may further hinder recovery in hiring. Aditya Narayan Mishra, CEO of Ciel HR, reported a 10% decline in bulk hiring demand in Q4 FY25 compared to the same period last year.
Startups Also Scaling Back
The cautious hiring trend extends to Indian software product startups, with hiring demand dropping from 35,000 to 25,000 since late March. Overall, the tech sector's contribution to active job demand has decreased from 45% to 40%.
Utilisation levels in leading IT companies remain around 83-85%, indicating efforts to enhance productivity while limiting new hires.
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