Infosys, TCS's combined headcount drops by over 11,700 in Q3
What's the story
India's leading IT services firms, Infosys and Tata Consultancy Services (TCS), have witnessed a decrease in their workforce for the quarter ending December 31. Infosys experienced a reduction of 6,101 employees, marking its fourth consecutive quarter of decline in headcount, while TCS saw a drop of 5,680 workers. This comes as the talent market cools and demand in key markets remains sluggish.
Details
Attrition rates show a downward trend
Both companies have seen a decrease in attrition rates during Q3 FY24. Infosys's attrition rate fell to 12.9% from 14.6% in the previous quarter, while TCS's rate dropped to 13.3% from 14.9% in Q2. This downward trend suggests a stabilization in the talent market as IT firms face challenges in their primary markets.
What Next?
Utilization rates and hiring priorities
In Q3, Infosys's utilization rate rose to 82.7% from 81.8% in Q2, excluding trainees. Hiring is not a top priority for either company, especially for backfilling attrition, as they deal with weak demand in key markets. Milind Lakkad, Chief HR Officer at TCS, said, "We are committed to hiring from college campuses and growing talent organically," adding that campus hiring for the next year has already begun.
Insights
TCS plans to add 40,000 freshers in FY24
TCS plans to hire 40,000 fresh graduates in FY24. Lakkad noted that the company's investment in acquiring new talent over the past 18 months is now paying off. He also mentioned that attrition is within their comfort range and that there is immense excitement among freshers to join TCS. The company anticipates returning to its normal operating mode by the end of the current fiscal year.