Indian IT services industry is all set to make 4.5 lakh gross employee additions between October 2021 and March 2022, with attrition on the rise and cater to the increasing demand from enterprises accelerating their digital transformation, according to a report.
The report, IT Industry Q2 Insights & FY22 Forecast, by market intelligence platform UnearthInsight revealed this is 12 percent more than what the companies hired in the first half of FY22.
With the attrition expected to be in the 17-19 percent, this would translate to net addition of 1.5-1.75 lakh during the same period. This includes hiring of laterals and experienced professionals.
With the demand at an all-time high, the companies will also step up the fresher hiring in the country. According to the report, “Nearly 2,50,000 freshers have been added so far in FY22 by IT services firms, both domestic and multinational firms in India.” The top companies that are hiring a large number of freshers include TCS (77,000), Infosys (45,000), Cognizant (45,000), and HCL Tech (22,000).
“Indian technology firms are majorly focusing on upskilling programs both in India and global markets. The top two Indian IT players offer integrated learning platforms for different personas of employees. Other Tier I and Tier II firms like Wipro, HCL, Tech Mahindra, Mindtree, and Mphasis are working towards creating a single interface for employees for learning, upskilling, reskilling and deployment,” the report said.
While attrition is at a high of 17-19 percent in FY22, it is expected to be around 16-18 percent in FY23. “The rise in Industry attrition is largely driven by the supply-side challenges which are transient and are expected to normalize from FY23,” the report said.
Cloud will be one of the key revenue generators for IT. The report pegs cloud services revenue to be $80 billion-$100 billion in revenues for the IT services industry by 2030.
The software product and platform business is expected to account for $15 billion to $20 billion in revenues by 2030 for Top Tier IT services firms, the report said.
While TCS, Infosys and HCL Tech will continue to expand US, Southeast Asia and India for products and platform business, tier-2 and tier-3 services firms such as Persistent, Ramco, Financial Technology, and Decimal Technologies are expected to generate larger share of revenues from products/platforms in global markets like US, UK, UAE, Singapore, and Africa.