Wipro reduces hiring as tech expenditures decline
BENGALURU, INDIA — Indian IT services giant Wipro is scaling back its hiring of engineering graduates this year in response to clients reducing their technology expenditures.
In an announcement, Wipro said it is now prioritizing onboarding candidates who have already received job offers but have not yet joined the company.
Wipro Chief Human Resources Officer Saurabh Govil said, “This year, the environment has changed, as you’ve seen across the industry. So, we will be cautious.”
Govil mentioned Wipro’s intent to hire fewer candidates this fiscal year compared to the 22,000 recruits from the prior year.
The firm recently reported a 3% share drop after the sudden resignation of its Chief Financial Officer, Jatin Dalal, marking the latest in a string of high-profile departures from the company.
Other Indian IT giants are exhibiting similar hiring trends. Infosys Ltd. may skip college placements until March 2024 and instead focus on rolling out salary hikes for their existing employees. HCL Technologies plans to recruit about 10,000 graduates, marking a decrease from last year. This hiring pattern is expected to ripple through smaller IT firms.
Similarly, bigger firms like Tata Consultancy Services (TCS) also voiced their plan to reduce costs by cutting recruitment count and instead boosting employee productivity. A report on Bloomberg said that this could deepen the job shortage in the sector and pose challenges for Indian Prime Minister Narendra Modi’s future political aspirations.
Traditionally, India’s IT services sector, valued at over $245 billion, has been a primary employer for fresh graduates. However, due to global uncertainties and economic pressures, including conflicts in Ukraine and Israel and rising inflation, IT firms are reconsidering their spending, leading to slowed hiring.
