India’s top four IT firms, TCS, Infosys, Wipro, and HCL Tech, have announced their recruitment plans for 2021-22 to 1.6 lakh freshers as businesses speed their digital transformation efforts in the wake of the pandemic and rising attrition.
These organisations hired 82,000 freshers in FY21 and gained 53,964 employees in the third quarter of 2021, up from 17,076 the previous year.
According to TCS CEO and MD, Rajesh Gopinathan, this robust demand climate is a “once-in-a-decade opportunity.” As a result, IT businesses have changed their forecasts and now expect double-digit growth. This has resulted in a high need for cloud architecture, cybersecurity, full-stack development, and AI/ML knowledge.
TCS reported an increase in attrition to 11.9% from 8.6% in the previous quarter. Wipro and Infosys reported 20% attrition, while HCL Tech recorded 15.7%. The attrition rate for these three IT firms was 10-15% in the preceding quarter.
Hiring freshers has emerged as a viable option for reducing attrition and meeting increased demand.
TCS expects to hire 78,000 freshers this year, up from the initial target of 40,000. It has already enrolled 43,000 new employees.
Wipro and Infosys have lowered their FY22 hiring goals to 17,000 and 45,000 employees, respectively.
HCL Tech intends to hire 22,000 freshers and add 11,135 new employees in the second quarter, setting a new high.
IT firms also consider additional incentives to maintain and attract top staff. Wipro and HCL Tech employees received wage raises on July 1, and TCS employees received raises on April 1, 2021.
The HCL Tech Board approved Restricted Stock Unit (RSU) grants to retain strong achievers as part of the remuneration package.
This is a long-term incentive strategy for the company. The company will switch from 100% cash awards to a combination of 70% cash and 30% RSUs for the grants under this model, which will be offered later in the year, subject to shareholder approval.
The corporation also implemented a 7-8% increase for offshore personnel and a 3.5% increase for onshore hiring, which took effect on July 1 for junior staff and October 1 for senior executives.
In addition, junior management will get a 100% quarterly incentive for the quarter.