India's second largest IT major Infosys has hired 6,000 freshers for the quarter ended September 2019 and may hire 9,500 more for FY20.
The company has also reduced its attrition from 23.4 percent, one of the highest, in Q1 to 21.7 percent in Q2.
The company announced that it will hire 18,000 campus hires for FY20. During Q1, it hired 2,500 from campuses.
Total hiring for the second quarter stood at 14,000, both freshers and lateral hires and 700 of them outside. For the quarter ended June 2019, the company had hired close to 8000 people in total.
Having completed its promise to hire close to 10,000 people in the US, the company did not provide new targets in the US. On the other hand, the company has moved part of its onsite work offshore.
However, Nilanjan Roy, Chief Financial Officer, said that it does not mean that the company is reducing its localisation efforts in the US and other regions.
Infosys is also controlling spend on the subcontractors and moving more work offshore to reduce cost. Roy explained, “Subcontractor is an integral part of the business. But we have hold down the subcontractor cost in Q2.”
For one, the company has moved more work offshore. This has increased the utilisation parameter. Utilisation now stands at 84.9 percent, excluding trainees. It has also reduced the number of subcontractors it employs onsite.
The company is using automaton to reduce the subcontractor workforce overseas, where the company has moved 2500 to 3000 people from fixed price projects and has given a part that money back to the clients.
This has reflected in better margins at 21.7 percent, 1.2 percent improvement over Q1 FY20.
Attrition, which has been plaguing the firm, has come down.
Infosys' Q1 attrition was one of the highest at 23.4 percent. UB Pravin Rao, Chief Operating Officer, then pointed out that the company has put in several measures to address the issue including better employee engagement and creating better career opportunities.
It seemed to have paid off, as the company reduced its attrition to 21.7 percent in the quarter ended September 2019. Rao explained that total attrition in tech services side in 19.4 percent, of which 18 percent is voluntary attrition. It has laid off close to 1.4 percent of the IT workforce. However the company did disclose the numbers.Infosys currently has close to 2.2 lakh software professionals and 13, 635 in the sales and support team.
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