The IT sector has witnessed a record employee addition this quarter while meeting the surge in demand for digital skills, rising attrition and lowering reliance on laterals and subcontractors.
Given this so-called war for talent in the sector, the companies believed that hiring laterals could put pressure on the company margins and this led to increased hiring of new graduates.
Infosys, for instance, announced the hiring of 35,000 freshers in FY2022. This is 10,000 higher than the previous target of 25,000. TCS also did record hiring for the second straight quarter.
The top five IT companies, as a whole, added ~4.3 percent to their employee base.
One of the main factors for the record hiring, IT companies said, is rising attrition.
Recently, TCS Management pointed out that the company has seen attrition levels of 11-12 percent in the past even in high-demand environments.
Also, Infosys said that it is taking several measures to contain attrition like an increase in compensation including special bonuses for digital skills and employee engagement with an emphasis on the career path.
In an interaction with CNBC-TV18, Tech Mahindra mentioned that they will not shy away from giving their employees a second wage this year if the market condition demands it.
Here are the attrition levels and QoQ increase in levels of top 5 IT companies:
|Companies||Attrition levels||QoQ increase|
|Tech Mahindra||17%||400 bps|
Given the accelerated spending on digitalization cloud adoption and business transformation, the street is expecting this IT hiring boom to continue.