India’s top five IT services companies- Tata Consultancy Services, Infosys, HCL Technologies, Wipro and Tech Mahindra -hired 25% fewer employees in the fiscal year 2019-20.
In all, the five software services providers added a net 66,500 employees, as compared to net hiring of 87,060 people in the financial year 2018-19. Together, they employ nearly 1.14 million people, a quarter of India’s 4.3 million technology workforce.
The dip in numbers has been attributed to the rising pace of automation amidst slower business growth. New technologies such as artificial intelligence, automation, and new-age technology platforms have disrupted the industry and are enabling delivery models that are not linear to a number of people.
Moreover, mundane tasks have been automated; reducing the need for some employees and enabling the existing staff to become more effective in solving business problems.
While organizations are trying to improve on their ability to deliver more with a lesser workforce, the subdued hiring trend is expected to prevail this year as well on account of COVID-19. The top five have promised to honor job offers already rolled out but have put on new hiring in the wake of the pandemic. For instance, although HCL Tech stated it would hire 15,000 freshers, it has frozen lateral hiring.
Though the pandemic is expected to have a short-term impact on job creation during the current year, however, need-based hiring is expected to continue by these tech services companies nevertheless. But given the fact that automation will keep on rising, the declining trend in job creation is likely to continue as the IT sector’s age-old business model goes through a change.