Source | LiveMint
Bengaluru: The $150 billion Indian information technology sector, once India’s largest organized job creator, is now reluctant to hire.
Forget creating jobs, many companies in the sector are choosing to not even fill the vacancies left behind by the people who have moved on.
For the first time in over two decades, two of India’s five largest software services firms, Wipro Ltd and HCL Technologies Ltd, reported a net decline in direct hiring. Meanwhile, Tech Mahindra Ltd saw a decline in its existing workforce in the January-March period.
The reasons are simple: slow revenue growth and adoption of newer technologies, such as cloud computing and automation platforms, that have started replacing engineers.
The trend could help IT firms reduce their wage bill but boost the training costs of existing employees. It will also hurt the future prospects of the hundreds of thousands of engineers India produces every year.
“The entire industry is in transition as new delivery models reflecting autonomic (computing), cloud, and analytics begin to take shape,” said Bill Huber, managing director of US-based outsourcing advisory firm Alsbridge Inc.
India’s third-largest software firm Wipro saw the net addition of 2,248 employees in the March quarter to take its workforce to 172,912 employees from 170,664 at end of the December quarter. Significantly, during the fourth quarter, 2,800 employees joined Wipro from the two firms it bought, namely HealthPlan Services and Cellent AG. This means that Wipro saw 552 more employees leave the firm than in the third quarter of last year.