Indian IT firms implement hiring freeze
Indian IT services firms are halting their recruitment efforts following a “whirlwind expansion” during the pandemic.
According to a report by Mint, five of the country’s largest IT services firms reported a sequential decline in sales and support staff in the third quarter as they laid off non-revenue-generating people and took a break from recruiting new workers.
The country’s fourth and fifth largest IT services firms—Wipro and Tech Mahindra —reported a sequential decline in sales employees, support staff, and software engineers, respectively, in July-September.
L&T Technology Services and Cyient also ended with fewer sales staff in the latest quarter, while Zensar posted a sequential reduction in workforce.
This is the first sequential decline in headcount at any large IT firm in India since the second quarter of 2020.
Companies are backtracking on their expansion plans due to fears of an impending recession and declining profitability.
Mint stated that staff costs around 55-65% of total expenses at IT firms. This makes it an ideal solution for tech companies to reduce workforce recruitment until the economy reaches stability.
