The top Indian IT services companies, including Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra, experienced a significant reduction in their workforce during FY24, with a combined loss of around 69,167 employees, as reported by Moneycontrol. Despite this trend, HCLTech stood out as the only company from the group that saw a slight growth in employee numbers, adding approximately 1,537 new employees in FY24.
The decline in headcount for the full financial year FY24 was notable among the major players in the Indian IT sector. TCS saw a reduction of 13,249 employees, Infosys had a decrease of 25,994 employees, while Wipro reported 24,516 fewer employees. Additionally, Tech Mahindra witnessed a drop of 6,945 employees during this period. On the contrary, HCLTech bucked the trend by adding about 1,537 employees in FY24, pointing towards a different trajectory compared to its counterparts in the industry.
Although the exact reasons for the decline in headcount were not explicitly mentioned in the report, analysts suggested that the lack of growth in FY24 prompted these IT companies to shift their focus towards enhancing margins and utilization rates instead. Despite the challenges faced in the previous fiscal year, all the companies exhibited a positive outlook for the future, with strong deal pipelines reported in Q4. Additionally, plans for fresh hiring in FY25 were outlined by TCS, aiming to hire around 40,000 freshers, HCLTech over 10,000 freshers, and Tech Mahindra set to recruit 6,000 freshers, as suggested by the report.