File image: Infosys CEO Salil Parekh
Bengaluru-based IT major Infosys will hire 26,000 people from campuses in India and overseas, for FY22. UB Pravin Rao, COO, Infosys, said that of the 26,000, 24,000 will be from India and the rest overseas.
In FY21, the company hired 21,000 in FY21 from campuses, of which 19,000 were from India and the rest overseas. Total employee count at the end of the year stood at 2,59,619, with net addition of 17,248 people last fiscal.
The company has also announced second compensation review for employees in July 2021, after the wage hike it rolled out in January 1, 2021. According to Rao, the company is getting back to its regular compensation review cycle, which is in July.
However, the attrition has increased to 15.2 percent, from 10 percent in the previous quarter. The company’s utilisation rate is at 86.3 percent, which Rao had said as high and the company wants to bring that down.
For the quarter ending March 2021, the company’s utilisation stood at 87.7 percent, which continues to be on the higher side. Salil Parekh, CEO, Infosys said that the company is hiring from both campuses and laterally in large numbers to ensure seamless execution.
The company is also taking multiple steps to contain attrition including wage hikes and promotions.
Its peer TCS, which announced the results on April 12, added 40,000 employees in FY21 and has already announced wage hikes for its employees effective April 1, 2021. Its attrition was at an all-time low of 7.2 percent.
Infosys reported $3,613 million, up 13 percent year-on-year for the quarter ending March 31, 2021. Digital revenues accounted for about 51 percent of the revenues. For the year ended March 31, the company reported $13.6 billion in revenue, up 6.1 percent year-on-year. Infosys signed $14.1 billion in deals in FY21, 66 percent of them net new deal wins.
At the back of strong demand environment the company has guided for 12-14 percent in revenues in constant currency and 22-24 percent for operating margins.
The company Board has recommended capital return of ₹15,600 crore including final dividend of ₹6,400 crore and open market buyback of shares of ₹9,200 crore.