India’s prominent IT services giants, Infosys and Tata Consultancy Services (TCS), reported a combined decrease of over 11,700 employees in the third quarter ending December 31.
Infosys saw a reduction of 6,101 employees, marking its fourth consecutive quarter of declining headcount. Simultaneously, TCS experienced a drop of 5,680 workers. This decline is attributed to a cooling talent market and sluggish demand in key sectors.
In terms of attrition rates, both companies exhibited a downward trend during Q3 FY24. Infosys’s attrition rate decreased from 14.6% to 12.9%, while TCS’s rate dropped from 14.9% to 13.3%. This shift suggests a stabilization in the talent market as IT firms grapple with challenges in their primary markets.
Q3 also saw an increase in Infosys’s utilization rate, rising to 82.7% from 81.8% in Q2 (excluding trainees). However, hiring remains a secondary focus for both companies, especially in backfilling attrition, given the subdued demand in key markets. Milind Lakkad, Chief HR Officer at TCS, emphasized the commitment to hiring from college campuses and cultivating talent organically.
In a contrasting move, TCS has ambitious plans to hire 40,000 fresh graduates in FY24. Lakkad highlighted the positive outcome of the company’s investments in acquiring new talent over the past 18 months. He expressed satisfaction with attrition levels within the comfort range, noting the excitement among freshers to join TCS. The company anticipates a return to its normal operating mode by the end of the current fiscal year.