IT midcaps set to keep hiring momentum going in near term
Persistent, LTTS, Coforge, and Happiest Minds expect headcount additions across laterals and freshers in the next few quarters after reporting positive revenue growth – although subdued – in the last quarter even as macroeconomic challenges persist.
This is in contrast to large-cap IT firms that have reported weak numbers and are expecting a dip in headcount.
While larger players are conserving resources and maintaining a cautious approach to hiring due to macroeconomic uncertainties, midcaps are focusing on bringing in more freshers to balance out employee costs.
Happiest Minds plans to add around 1,300 to its workforce during the fiscal year while Persistent expects to onboard almost 800 freshers by December.
Coforge management during its recent earnings call said out of the 1,000 people added during the first quarter, 200 were graduate engineer trainees. The company has reiterated its annual revenue growth guidance of 13-16% in constant currency terms despite deferrals in deal closures.
Coforge has also seen healthy growth in the US in the last quarter of around 5.6% despite an unfavourable economic environment there.
“So, at this point in time, given how big the tech services market in the US is, and how small we are in relative terms, we still see clear opportunities in the market,” Coforge chief executive Sudhir Singh told ET.
The company has built a solid bench strength of employees to service some of the large deals it has won, he said.
Persistent reported in-line numbers during the April-June quarter, led by strong growth across the top client base and marquee deals.
