Bengaluru: Tata Consultancy Services, Infosys and Wipro, India's largest IT services companies, are set to leave 64,000 jobs in FY24 amid a weak global demand environment and reduced technology spending by customers.
Wipro, which announced its Q4 earnings on Friday, reported a decline in headcount numbers to 2,34,054 by March 2024, compared to 2,58,570 in the year-ago period, in headcount during the financial year ending March 2024. There was a decline of 24,516.
Saurabh Govil, Chief Huma Resources Officer, Wipro, said, "...the immediate headcount reduction is primarily due to the market and demand environment as well as the operational efficiencies we have driven, which is reflected in our margins. Is."
In the long term, he said, as the company moves towards more IP-based platforms like Artificial Intelligence (AI), there could be a divergence in terms of growth in headcount.
India's IT services industry – a US$254 billion powerhouse – is feeling the heat of global macroeconomic uncertainties and geopolitical fluctuations, which have caused customers to become cautious about IT spending.Infosys, India's second-largest IT services exporter, reported total employee headcount at 317,240 by March 2024, down 25,994 from 343,234 employees in the same period last year.
"When we started, we were at 77 per cent utilization including trainees. The development environment was different at that time. Our utilization has increased to 82-83 per cent. Our attrition has also reduced significantly.This is the reason for the net headcount reduction,” Infosys CFO Jayesh Sanghrajka had said during the company's Q4 results on Thursday.
The company registered a decline of 12.6 percent.
“The hiring model has changed over the years. We are now on a more agile model of campus hiring. We are at 82 percent utilization at the moment.We still have scope for more than that and the attrition is very low, so we don't have any." Sangharajka had said, "The decision has been taken on the campus hiring numbers at this time."
Bigger rival TCS also saw a decline of 13,249 employees from 601,546 employees in the financial year.
Wipro on Friday reported a 7.8 per cent year-on-year decline in its consolidated net profit in the March quarter to around Rs 2834.6 crore, and cautioned that the macroeconomic environment remains "uncertain". While the headline numbers were more or less in line with expectations, the company has given IT services revenue growth guidance in the (-)1.5 per cent to +0.5 per cent band for the June quarter on a constant currency basis.Infosys on Thursday disappointed with its forecast of 1-3 percent annual revenue growth for fiscal 2015, raising concerns that global macroeconomic uncertainty is weighing on client decisions and discretionary spending.
Infosys' weak, somewhat realistic guidance dragged down its US-listed shares as analysts wondered whether global cues could drive a recovery for the Indian IT industry in the second half of the fiscal year.
Last week, TCS reported a 9 per cent rise in net profit to Rs 12,434 crore in the January-March quarter of FY24 due to strong domestic business, even as the company struggled in its key markets overseas.
Wipro, which announced its Q4 earnings on Friday, reported a decline in headcount numbers to 2,34,054 by March 2024, compared to 2,58,570 in the year-ago period, in headcount during the financial year ending March 2024. There was a decline of 24,516.
Saurabh Govil, Chief Huma Resources Officer, Wipro, said, "...the immediate headcount reduction is primarily due to the market and demand environment as well as the operational efficiencies we have driven, which is reflected in our margins. Is."
In the long term, he said, as the company moves towards more IP-based platforms like Artificial Intelligence (AI), there could be a divergence in terms of growth in headcount.
India's IT services industry – a US$254 billion powerhouse – is feeling the heat of global macroeconomic uncertainties and geopolitical fluctuations, which have caused customers to become cautious about IT spending.Infosys, India's second-largest IT services exporter, reported total employee headcount at 317,240 by March 2024, down 25,994 from 343,234 employees in the same period last year.
"When we started, we were at 77 per cent utilization including trainees. The development environment was different at that time. Our utilization has increased to 82-83 per cent. Our attrition has also reduced significantly.This is the reason for the net headcount reduction,” Infosys CFO Jayesh Sanghrajka had said during the company's Q4 results on Thursday.
The company registered a decline of 12.6 percent.
“The hiring model has changed over the years. We are now on a more agile model of campus hiring. We are at 82 percent utilization at the moment.We still have scope for more than that and the attrition is very low, so we don't have any." Sangharajka had said, "The decision has been taken on the campus hiring numbers at this time."
Bigger rival TCS also saw a decline of 13,249 employees from 601,546 employees in the financial year.
Wipro on Friday reported a 7.8 per cent year-on-year decline in its consolidated net profit in the March quarter to around Rs 2834.6 crore, and cautioned that the macroeconomic environment remains "uncertain". While the headline numbers were more or less in line with expectations, the company has given IT services revenue growth guidance in the (-)1.5 per cent to +0.5 per cent band for the June quarter on a constant currency basis.Infosys on Thursday disappointed with its forecast of 1-3 percent annual revenue growth for fiscal 2015, raising concerns that global macroeconomic uncertainty is weighing on client decisions and discretionary spending.
Infosys' weak, somewhat realistic guidance dragged down its US-listed shares as analysts wondered whether global cues could drive a recovery for the Indian IT industry in the second half of the fiscal year.
Last week, TCS reported a 9 per cent rise in net profit to Rs 12,434 crore in the January-March quarter of FY24 due to strong domestic business, even as the company struggled in its key markets overseas.
