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HCL Tech to hire 12,000 freshers this year, lifts suspension of salary hikes

The company has already hired 3,000 freshers, and the rest would be on-boarded in the next two quarters. There is a robust hiring plan in place for laterals as well. The salary hike will be carried out in two cycles.

October 16, 2020 / 03:11 PM IST
 
 
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Noida-based IT services firm HCL Tech will hire 12,000 freshers for FY21 from campuses. The company has already hired close to 3,000, and the rest would be on-boarded in the next two quarters, said VV Apparao, Chief Human Resources Officer, HCL Tech.


The company is also hiking salaries in two instalments, effective October and January 2021. Its peers TCSInfosys and Wipro, too, have announced the salary increment cycle for Q2.


All the top IT companies, including HCL Tech, had suspended hikes following COVID-19.


Hiring

Apparao, in an earnings call on October 16, after the announcement of the Q2 results, said that the company hired 1,500 freshers in Q2 and 1,200 in Q1 from campuses, and are significantly enhancing this in the next two quarters.


“We were unable to recruit in many universities and colleges because they (students) had not finished their final exams. So, they are not yet qualified to join us though we have given them offers,” he explained.


“The reason for confidence for the next two quarters is that we have already made offers to a lot of students. It is a question of them finishing their final year and joining us,” he added.


There is a robust hiring plan in place for lateral hiring, too. On this front, Apparao said that the company will be hiring significantly and expects recruitment to take place before December. “It is much more than the initial two quarters. That is reflective of the pipeline what C Vijayakumar (CEO) is mentioning,” he said.


The company reported revenues of $2.5 billion for the quarter-ended September 2020, up 4.5 percent quarter-on-quarter on constant currency, in line with its mid-quarter guidance. This was on account of better deal momentum and growth across verticals and service lines.


The company had made many revisions to its Q2 guidance. After the mid-quarter guidance, it revised its Q2 guidance to 3.5 percent last month. Earlier, it had projected 1.5-2.5 percent.


For Q2, C Vijayakumar, CEO, HCL Tech, said the company closed 15 transformational deals and new order bookings increased 35 percent compared to the last quarter.


Salary hikes

According to Vijayakumar, this has led the company to resume its salary hikes this year. HCL Tech follows the July cycle for salary hikes.


The company had, in July, suspended salary hikes for FY21, owing to COVID-19. With demand recovering, the salary hikes will resume.

For those till the E3 band (Junior Associates to Project Managers), the salary hike would start from October 1, 2020. For others, it would take effect from January 2021. Average salary hikes stand at 6 percent for offshore employees and 2.5 percent for onsite employees.
Moneycontrol News
first published: Oct 16, 2020 03:11 pm

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