India’s largest creator of Jobs, its Information Technology sector is finding it difficult to add employees to its work force. In the quarter that ended on 30 June, three of the five major Information Technology companies saw their work force deflate.
The five firms, which together employed 984,913 people at the end of June quarter, saw a decline of 1,821 in the number.
According to National Association of Software and Services Companies (Nasscom), the development bodies responsible for Information Technology sector employed around 3.9 million people at the end of March 2017. Nascomm projected that Indian IT sector will see an increase of atleast 150,000 in the current year. However, looking at the current pace, serious questions are raised on whether Indian IT sector will be able to meet the Nascomm’s predicions.
Tata Consultancy Services saw a decline of 1,414 in its workforce to 385,809 employees at the end of June quarter as against 387,223 at the end of previous quarter. Infosys saw a decrease of 1,811 people while Tech Mahindra Ltd curbed its workforce by 1,713 people.
Only HCL Technologies and Wipro Ltd saw a net addition to their employee count. Post acquisition of Infoserver, Wipro added 200 employees to it’s workforce. Also, it saw and addition of more 1,000 employees when Wipro Ltd won an outsourcing deal in its business process outsourcing business.
Larsen and Toubro Infotech Ltd, Mindtree Ltd, KPIT Technologies Ltd, Hexaware Ltd and Cyient Ltd, which together employ around 77,447 people added 2026 people to their workforce.
Thus, we see that India’s India’s top 10 IT firms added 205 employees during the period from April to June which boosted their count to 1 million employees at the end of Jume quarter.
With inclusion of newer technologies and automated tools to perform various repeated tasks that were performed by a brigade of engineers, IT firms are finding it difficult to increase their work force.