In a first, 3 of top 5 Indian IT firms see workforce shrink in one quarter
The five firms, which together employed 878,913 people at the end of the June quarter, saw their workforce shrink by 1,818 people.business Updated: Aug 01, 2017 09:30 IST
The $154 billion Indian information technology (IT) sector, once India’s largest creator of jobs, is now struggling to even add to its workforce. For the first time, three of the five largest IT companies saw their workforce shrink in the quarter ended June 30.
The five firms, which together employed 878,913 people at the end of the June quarter, saw their workforce shrink by 1,818 people.
This development bodes ill for India’s IT industry, which employed 3.9 million people at the end of March 2017, according to lobby group National Association of Software and Service Companies (Nasscom). It also raises a question on whether the Indian IT sector will be able to meet Nasscom’s projection of adding at least 150,000 people in the current year.
Tata Consultancy Services Ltd, the country’s largest software services firm, saw its workforce decline by 1,414 people to 385,809 employees at the end of June quarter, as against 387,223 at the end of the previous quarter. Infosys Ltd saw a net decline of 1,811 people while Tech Mahindra Ltd, the fifth largest company, saw its workforce shrink by 1,713 people.
Only Wipro Ltd and HCL Technologies Ltd reported net additions to their workforce. Wipro saw 200 employees join the company on the acquisition of Infoserver, and an additional 1,000 employees added to its workforce from one of its clients when the Bengaluru-based IT company won an outsourcing deal in its business process outsourcing business.
India’s sixth largest IT outsourcing company, Larsen and Toubro Infotech Ltd, Mindtree Ltd, KPIT Technologies Ltd, Hexaware Ltd and Cyient Ltd, which together employ 77,447 people, added 2,026 employees during the first quarter. This means that India’s 10 largest IT firms added 208 employees in April-June period to take their total workforce to 956,360 employees at the end of June 2017.
(Published in arrangement with Livemint)