Infosys headcount declines for third consecutive quarter to 3.29 lakh
IT services giant Infosys, has seen its headcount drop for the third quarter (ending September 30) in a row, with a decrease of 7,530 employees in Q2. The company's total workforce now stands at 3,28,764. This comes after previous declines of 3,611 in Q4FY23 and 6,940 in Q1FY24. Tata Consultancy Services, another major player in the industry, also witnessed a dip in headcount during the same timeframe.
Attrition rates drop as the talent market cools off
The attrition rate at Infosys has been steadily dropping, falling to 14.6% in the last quarter from 17.3% in the prior quarter on a last-twelve-month basis. This shift is credited to the cooling down of the talent market and the normalization of attrition rates across the board. Companies are predicted to tighten their budgets and concentrate on boosting utilization in light of challenging demand and macroeconomic conditions.
Infosys remains tight-lipped on hiring plans
Infosys hasn't revealed any specific hiring plans for the future. The company has simply stated that it will modify its hiring strategy for FY24 based on factors like employee availability, growth expectations, and attrition trends. This approach is in line with the industry-wide tendency of cautious hiring and budget tightening to navigate the current economic landscape.
Utilization metrics improve as Infosys focuses on efficiency
To ramp up efficiency, Infosys is focusing on improving its utilization metrics. The company reported an uptick in utilization from 81.1% in Q1 to 81.8% in Q2, excluding trainees. This emphasis on efficiency is anticipated to persist as Infosys and other IT services firms adapt to shifting market conditions and aim for peak performance.
