In Q1, headcount at IT companies shrinks sharpest in three years

economictimes.indiatimes.com:

Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, LTIMindtree and L&T Technology Services (LTTS) contracted by 18,000, worse than a negative 9,000 in the June quarter of 2021, which was during the pandemic, according to data compiled by Xpheno for the last three financial years. To be sure, two out of the six were in positive territory — TCS, the country's biggest IT company, added 523 and LTTS added 1,159 in the quarter. «With four out of the six quarterly net headcount movements in deep red, the two minor positive movements bring little cheer,» said Xpheno cofounder Kamal Karanth.

«FY24 has definitely got off to a shaky start.» Companies in the IT sector are feeling the heat of the slowdown in projects. As a result, Infosys has cut its FY24 revenue growth estimate to 1-3.5% in constant currency terms, against 4-7% earlier. «In the short term, we see some clients stopping or slowing down transformation programmes and discretionary work,» Infosys chief executive officer Salil Parekh had said while announcing Q1 results.

The numbers are based on earnings statements. Tech Mahindra will announce results later this month. TCS, Infosys, HCLTech, LTIMindtree and LTTS didn't respond to queries.Talent moving even in slow market «Our attrition rates have been steadily declining throughout FY23 and we ended the last quarter with 14.1% attrition,» a Wipro spokesperson said.