France-based IT services provider Capgemini said it will be hiring more than 25,000 employees in 2018 in India after recruiting 27,000 workforce in 2017 against a target of 20,000.
Capgemini indicates that the company set a target of 25,000 for IT job additions for the current year against 20,000 new jobs targeted for 2017. Last year, Capgemini’s India job additions increased to 27,000 from a target of 20,000.
Capgemini, which employs half of its employees in India, said the company hit a peak in terms of transferring jobs from the developed markets to India, which may cap the pace of local hiring, PTI reported.
Capgemini has increased the number of employees in its offshore centers to 115,900, representing 57 percent of the total headcount, in the first quarter of 2018.
Attrition grows
Capgemini is indicating a slowdown in the hiring of new employees in India this year at a time when the IT outsourcing company is facing significant attrition in Q1 2018. The attrition rate touched 17.2 percent in Q1 2018 as compared with 15.3 percent in Q1 2017, Capgemini said in April.
The technology outsourcing company earlier said the attrition in Consulting Services business rose from 18 percent to 19.4 percent. Attrition at Technology and Engineering Services increased from 17.6 percent to 18.9 percent. Job attrition at Application Services grew from 14.3 percent to 15.7 percent. Attrition in Other Managed Services was 20.0 percent against 16.5 percent.
For comparison, Tata Consultancy Services (TCS) said the attrition rate of its IT Services business fell 0.1 percent in Q4 fiscal 2017-18 to 11 percent, while the total attrition rate (including BPS) fell to 11.8 percent.
It’s believed that some of the over one lakh employees are unhappy on the increase in the annual salary. Capgemini said the base salaries have grown 6 percent this year and it will prefer to give higher wages to those with the higher skills for the future rather than have a uniform approach.
“With 100,000 people, we have the kind of stature we need in India. We are not looking for more stature here in India,” Capgemini chairman and group CEO Paul Hermelin told reporters.
Capgemini has progressively replaced a lot of French, Dutch and Americans with Indians. Capgemini India is growing at 20 percent in terms of headcount.
Hermelin said Capgemini is at a cruising speed currently, hinting that hiring of new employees will not be higher than the last year’s level.
Capgemini added 27,000 people in India to touch the total headcount at 100,000 in 2017, which is half of its global headcount.
Capgemini has plans to hire over 25,000 in the country. Globally it employs 203,400 (+3.9 percent) as of March 2018.
Capgemini India chief operating officer Ashwin Yardi said that the company is creating its second innovation centre in Hyderabad that will house around 100 employees.
The technology outsourcing company has 12 such centres globally. Capgemini will have 12 innovation centres globally.
Capgemini India has 12 offices in Delhi and NCR, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Gandhinagar, Salem, Kolkata, Trichy and Bhubaneswar.
Capgemini achieved revenues of €3,153 million in the first quarter of 2018, up 7.2 percent at constant exchange rates and up 1.2 percent at current exchange rates.
Capgemini aims to achieve 6-7 percent increase in revenue at constant exchange rates with operating margin of 12-12.2 percent in 2018.
