The Indian IT Services industry will be hiring ~ 360,000 freshers in FY22. The IT services industry will see an uptrend in attrition with 22.3 percent in Q3, which stood at 19.5 percent in last quarter and in Q4 it’s expected to be between 22-24 percent. However, from FY23 it is likely to come down to 16-18 percent.
UnearthInsight expects ~3,50,000-3,60,000 freshers to be added in FY22 by 30+ IT Services firms accounting for 14 percent-18 percent of the freshers in total headcount, therefore, aiding margin control, attrition control and growth both globally and in India.
Top IT companies hiring freshers will be:
TCS – 77,000 freshers (105,000 is revised fresher hiring by TCS. Met FY22 hiring targets in Q3FY22 itself)
Infosys – 41,000-42,000 freshers (Revised Target 55,000 in FY22)
Cognizant – 33,000 freshers (Revised Target of 50,000 in FY22)
HCL – 15,787 freshers (22,000 for FY22 and 30,000 for FY23)
Capgemini India – 17,000 freshers (Revised Target of 19,000 in FY22)
Tech M – 10,000 freshers added YTD
Wipro – 14,000-15,000 freshers (17500 for FY22 and 23,000 for FY23)
LTI – 4,000-4,500 freshers (Revised Target of 5,500 in FY22)
Mindtree – 2,000-2,500 freshers for Mindtree (3,500 for FY22)
Mphasis – ~5,500 freshers Target for Mphasis in FY22
There will be 19-21 percent revenue growth for FY22, highest ever for the Indian IT services industry, which is also expected to continue in FY 23 and 24. This year, notably Tier II firms are growing much faster on the back of pricing, agility, and partnerships.
The Indian IT Services market is likely to reach $230B to $240B by FY22 which is largely driven by growth amongst the top 15 to 20 Indian IT services firms with robust GCC and captive industry growth, a report from UnearthInsight, a metrics benchmarking and market intelligence firm, said.
Total Contract Value (TCV) continues to show strength on back of the large digital transformation, platform implementation, product and cloud implementation deals across BFSI, retail, and healthcare clients.
The UnearthInsight report estimates that 56 percent-57 percent employee costs/wage bill (Excluding contractors) across Tier I and Tier II players and this is expected to go up by 0.5 percent-1 percent in FY23.
“While Industry’s wage bills are on an upward trend, attrition levels continues to be a matter of concern for industry and it’s likely to continue for another quarter before it starts improving from next FY. On technology side, Key IT firms are witnessing excellent growth in their Cloud and Product & Platform business whereas penetration of low-code and no-code platforms is gaining significant momentum,” Gaurav Vasu, Founder and CEO, UnearthInsight said.
