InvestorQ : Is it correct that the big 3 IT firms are going slow on hiring in the next year?
Aashna Tripathi made post

Is it correct that the big 3 IT firms are going slow on hiring in the next year?

Aditi Sharma answered.
1 month ago

Just a few quarters ago, the big IT majors like Infosys, TCS and Wipro were going all out adding freshers to their roster. That hiring boom in the Indian IT industry has mutated into a hiring freeze, or you can almost say a sharp fall in the recruitment outlook for the coming year. Most of the IT companies, especially the large names, are planning to aggressively cut down on campus hiring and entry-level job recruitments by as much as up to 20% in the next financial year i.e. Hiring for FY23 is unlikely to change, but there are cases where even in FY23, offers have been made but joining dates are yet to communicated.

What is possibly driving this feeling is the fear of recession in the US and Europe. After all, for the IT majors, it is US, UK and Europe that account for 80-85% of their total revenues. All the 3 regions are on the throes of a recession, so the signals are not too good. A recession normally results in a slowdown in technology spending and that has an impact on the top lines of IT companies. It is not just that the business volumes will come down but even the pricing power will vanish for the IT companies in India. Last year, aggressive campus recruitments were mean to counter high attrition rates. Now it is about the slowdown fear.

It is being projected that the FY24 fresher hiring could drop by 20% over FY23 as companies may prefer to focus on getting the old recruits onboarded to start working on client projects. However, that is unlikely to change the attractiveness of the big IT companies for employees since they are much more fleet footed. For FY23w, the hiring numbers are Here is a quick summary of FY23 hiring by major IT players. While Infosys will hire 50,000 from college campuses, Wipro 30,000, TCS 40,000 students, Tech Mahindra 15,000 and HCL Tech 45,000 did a big job in 2022. For FY24, levels would be less by 20% to 25% of FY23 levels.