The Indian IT services sector will hire 3,60,000 freshers in 2022, according to market intelligence firm Unearthinsight. The third wave of the pandemic has almost subsided, with workplaces expected to open completely in a couple of months. While the attrition for the third quarter of 2022 was at 22.3%, the attrition for the 4th quarter of 22 is expected to be between 22-24%, however, this number will come down to 16-18% for FY 23, according to UnearthInsight.
The top thirty IT services firms will hire these freshers, accounting for 18% of all freshers in the financial year 2022.
Among the IT services companies which hired the most in the first three quarters of 2022, TCS hired 77,000 freshers, while Infosys pulled in around 41,000. For the financial year 2022, TCS has revised its intake to target 1,05,000 freshers, while Infosys wants to hire 55,000 more. Cognizant, for the calendar year 2022, plans to add 50,000 freshers.
Other companies that look to hire around 15,000 freshers include HCL, Capgemini and TechMahindra.
The report cited that Tier II firms are growing much faster on the back of string digitisation, partnerships and overall positive sentiments. In this regard, the Indian IT services market will touch anywhere between $230 to $240 billion by FY22. This will be backed by large digital transformation, product and cloud implementations deals across the BFSI, retail and healthcare segments.
“The IT Industry growth outlook remains intact and this financial year industry is likely to achieve best ever revenue growth and will continue to add workforce as per the estimates,” said Gaurav Vasu, Founder and CEO, UnearthInsight.
Talent crunch also seems to be a gnarling issue, as it places extra pressure on hiring, retaining and subcontracting costs.
In January TechCircle reported that Indian information technology (IT) companies such as TCS, Infosys, and Wipro are on a strong hiring spree, and have added about 51,000 employees in the third quarter alone. But there is a limited talent pool to tap into, both for freshers and experienced executives. There is also going to be an estimated spurt in the number of global capability centers. As many as 500 GCCs are expected to spring up in India, and the number of employees needed for these centers will go up from 1.38 million to about three million by 2025.
“Attrition levels continues to be a matter of concern for industry and it’s likely to continue for another quarter before it starts improving from next FY. On technology side, Key IT firms are witnessing excellent growth in their Cloud and Product & Platform business,” added Vasu.