Top three Indian IT services firms reported an increase in headcount for FY25 after a year of degrowth though overall hiring trend remained tepid as compared to post-Covid years. Global macroeconomic uncertainty created owing to reciprocal tariffs imposed by the US coupled with AI-led automation were cited as top reasons for such subdued headcount growth during FY25.
In the March quarter of FY25, Tata Consultancy Services (TCS), Infosys & Wipro added 1,438 employees. This was an encouraging improvement over the previous quarter when these top three IT firms saw a decline of 936 staffers.
For the overall fiscal (FY25), these companies added 13,503 staffers as compared to a decline of 64,000 staffers in FY24.
“Despite ongoing global uncertainties, FY25 has marked a recovery phase for major Indian IT firms, following the historic headcount decline of FY24. However, hiring remained measured in Q4, reflecting continued caution in client spending and persistent macroeconomic headwinds. Attrition rates have stabilized across the industry at an average of 13–15 per cent, indicating a more balanced yet evolving talent landscape,” Sachin Alug, CEO of staffing firm, NLB Services said. Industry experts also opined that IT firms would be cautious in their headcount addition depending on the demand environment.
“Currently, no company has the visibility over growth in the short-term owing to disruption created by Trump tariffs. Therefore, IT firms will undertake demand-based hiring in April-June quarter,” said an industry source. Uncertainty over headcount addition was clear from the management commentary given after fourth quarter results.
“With respect to net additions, it depends on the overall business environment and what we eventually hire in the market,” Chief Human Resources Officer of TCS, Milind Lakkad said.
The Tata Group company, however, will hire around 40,000 freshers in the current fiscal year, which is at a similar level to last year. Sources in the know said absorption of freshers will depend on project ramp ups as seen in recent years.
Similarly, Infosys plans to hire around 10,000 people this fiscal. In contrast, Wipro’s fresher hiring will depend on the demand environment this year.
Meanwhile, pauses in ongoing projects, project ramp downs and possible cancellations are making IT companies nervous regarding headcount addition.
“In Q4 results, management of some firms has said about a pause in project implementation by clients. It is true that many firms currently are facing client-specific issues though these are not public domain.
Taking these factors in account, hiring will be done on-demand basis in coming quarters,” said the source.