Chart Beat: Muted hiring trends paint a grim picture of IT sector
Tata Consultancy Services, Infosys, Cognizant Technology Solutions Corp, Wipro, HCL Technologies and Tech Mahindra. On an aggregate basis, the net hiring for these companies dropped sequentially by 14,732 in Q4FY24 vis-à-vis declines of 15,891 in Q3 and 11,123 in Q4FY23, according to Kotak.
On a year-on-year basis, net headcount declined by 76,267 or 3.9% in Q4FY24. Usually, easing in hiring tends to aid margin outlook, but in the current scenario, it is yet another sign of IT companies not anticipating a near-term demand revival.
The prevailing caution among technology companies is not entirely surprising and well captured in the muted management commentaries. With discretionary IT spending not showing signs of meaningful pick-up yet and companies witnessing project cancellations, IT firms are unlikely to become gung-ho about hiring soon.
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