The top five software service providers in India namely, Tata Consultancy Services Ltd (TCS), Cognizant Technology Solutions Corp., Infosys Ltd, Wipro Ltd, and HCL Technologies Ltd. have hired 24,047 people in the first quarter of this fiscal, compared with the 13,772 net additions in the earlier fiscal.
According to the analysts, the increase in hiring can be attributed to the following three reasons:
1. Organizations are looking to spend more on outsourcing technology.
2. Fortune 1000 companies using data analytics platforms offered by information technology (IT) vendors to run has led to more work for the outsourcing companies.
3. Companies are intensifying their spending on digital technologies which has led to more contracts valued at over $1 billion.
For example, TCS begged three mega deals since December, bringing in a combined $5.6 billion in revenue. Last week, Wipro gained its largest contract valued at $1.6 billion.
A senior executive at TCS was quoted in the media saying, “Growth is back." He further shared “Companies were always spending more on digital in the past. But now, what we are seeing is that if the traditional business can be done efficiently and if you have solution offerings like data analytics and AI (Artificial Intelligence) platforms, you will be able to differentiate from others.”
The analysts further commented that while IT companies are shifting from a people-led to a platform-based business model, hiring by the largest IT firms continues to be a prime indicator of their prospects.
According to the reports, the five firms together employed 1.17 million at the end of the June quarter.