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Navigating Workforce Trends: Employee Dynamics in Large vs. Mid Tech Companies
Navigating Workforce Trends: Employee Dynamics in Large vs. Mid Tech Companies

October 6, 2024

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Employee Base Decline in Large Tech Companies but positive outlook for fresher hiring

 

    • Large tech firms saw a net reduction of ~1,700 employees (-0.1% q-o-q) , marking the seventh consecutive quarter of decline.
    • Despite the reduction, the focus remains on fresher hiring, with large tech companies preparing to onboard freshers in FY25.
    • Fresher Hiring Outlook for FY25
      • TCS plans to hire 40k freshers this year.
      • Infosys targets 20k freshers through campus and off-campus hiring.
      • Wipro will bring on 10k to 12k freshers this year and plans the same for next year.
      • HCLTech has already onboarded 1,078 fresh graduates and aims to hire 10,000 freshers in FY25.

Mid-Tech Companies Show Employee Growth

 

    • Mid-cap tech firms added ~2.2k employees in Q1FY25.
    • This represents a 2.3% q-o-q and 2.7% y-o-y increase.
    • Increased focus on building domain capabilities, flexibility in handling small and short-term projects, allowing them to adapt more effectively to clients' needs has contributed to the growth.

 

Unchanged attrition rates but improved utilisation

 

    • Overall, attrition remained unchanged for both mid-sized and large tech companies. However, mid-tier firms reduced attrition by 400-basis points y-o-y , while large tech companies saw a 340-basis point reduction y-o-y.
    • Tech companies improved their utilization levels (excluding trainees), with an increase of 260 basis points y-o-y.
    • More freshers are being placed on billable projects as companies optimize resource utilisation.

 

Robust Deal Pipeline contributing to net additions

    • The combined deal pipeline of top Indian tech companies (Incl. Large and Mid-cap companies) reached $20.3 billion in Q1FY25.
    • Emerging technologies like AI, Cloud Transformation, Data Analytics, and IoT are the key drivers of this growth.

 

Note: The sample set of companies analyzed for this blog includes TCS, HCLTech, Wipro, Tech Mahindra, Infosys, LTIMindtree, Coforge, Persistent, Mphasis, Birlasoft, and Happiest Minds.

 

 

 

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Prajwal Pandey
Research Analyst

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