Tech Mahindra headcount declines by 4,000 in FY21, to accelerate pace of hiring in FY22

Chief Executive Officer and Managing Director of Tech Mahindra CP Gurnani. REUTERS/Giorgio Perottino - RTX1YNFP

IT services firm Tech Mahindra saw its headcount decline by 4,182 even as it looks at double-digit organic growth this fiscal. According to the firm, it will accelerate its hiring in the next few quarters with strong deal pipeline in place for FY22.

Speaking to media on April 26 during earnings announcement, CP Gurnani, CEO & MD, said, “We are not giving any firm guidance but we are looking at double-digit organic growth. To sustain the double-digit organic growth you also need to have a right level of hiring.”

“We are the net hirer for the next two quarters and will be adding 8-10 percent people over the next two quarters,” Gurnani added.

The company will also have a huge focus on skilling, future skills readiness, and hiring to make sure that the company has right supply chain and right balance between growth and utilisation, the CEO said.

As the company shifted its focus on Nxt.Now strategy, which aims to leverage the growing demand for new age services such as AI, blockchain, cybersecurity and 5G, it saw its headcount drop.

The headcount dropped to 1.21 lakh in FY21 from 1.25 lakh from a year ago period. However, this is likely to increase in the coming months. “The deal wins which we spoke about and robust pipeline across will mean that you will see acceleration in hiring over the next few quarters to reflect the deal wins and deal ramp ups,” said Vivek Agarwal, President – BFSI, HLS and Corporate Development.

According to Gurnani, this momentum is expected to last in FY22 as well.

The company reported $1.04 billion in net new deals for the quarter ending March 31, 2021 and $2.21 billion in new deal wins for the year.

Though the company does not see any impact on delivery due to the second wave of the pandemic, on wage hikes front, the company will implement them, effective April 2021.

Tech Mahindra reported $5111.1 million revenues, down 1.4 percent year-on-year for FY21. For the quarter ending March, the company’s revenue stood at $1329.6 million, up 2.7 percent year-on-year.