It’s no secret that Indian IT’s relationship with its workers is just not actually easy. Typically, it’s delayed wage hikes, and different instances, it’s gives which have been rescinded for recent graduates. The temper throughout India’s high IT companies—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—is certainly one of warning, as gauged from their This fall FY25 earnings calls.
With over 1.5 million workers between them, these corporations are treading rigorously on wage hikes and hiring. For workers, this doubtless interprets into smaller pay hikes—or delays altogether—within the present fiscal 12 months.
Neeti Sharma, CEO of TeamLease Digital, informed AIM that it’s a wait-and-watch time for all IT providers corporations. “World uncertainties are nonetheless not behind us, and in addition the tariff dialogue, which nobody has a view on as of now,” she mentioned.
That appears to be true. TCS sometimes arms out raises between April and July. Nonetheless, this 12 months, the corporate has deferred choices on increments, citing “macroeconomic uncertainty”, Milind Lakkad, chief HR officer, indicated throughout a post-earnings name.
Wipro mirrored this method, planning to revisit pay hikes nearer to September. “We’re nonetheless very removed from that point, and on this unsure surroundings, we are going to resolve nearer to the date,” mentioned Saurabh Govil, Wipro’s chief HR officer.
HCLTech stays an outlier, sticking to its conventional October cycle for wage hikes, sustaining final 12 months’s schedule. In the meantime, Tech Mahindra, like final 12 months, pushed again its wage revisions however finally rolled them out within the January-March 2025 quarter.
In 2024, TCS was the earliest mover, handing out hikes between 4.5–7% throughout April–June, whereas Wipro adopted with 4–8% raises beginning in September.
Profitability stays the driving pressure behind the warning. Infosys, HCLTech, Wipro, and Tech Mahindra all posted improved working margins in FY25.
By way of income, TCS, Infosys, HCLTech, Wipro, and Tech Mahindra reported $30.18 billion, $19.28 billion, $13.84 billion, $10.51 billion, and $6.26 billion, respectively.
Hiring Takes a Hit
Corporations are strolling on eggshells on the subject of hiring. Solely Infosys, which goals to recruit 20,000 freshers in FY26, has put out a concrete quantity. TCS indicated it may match or exceed the 42,000 campus hires it made in FY25. HCLTech plans to ramp up more energizing hiring from final 12 months’s 7,829, however prefers to plan “quarter-on-quarter” moderately than setting annual targets.
“We’re going to make our plans on a quarter-on-quarter foundation. It’s much more prudent within the present local weather,” mentioned Ramachandran Sundararajan, CHRO at HCLTech, through the earnings name. The goal is to rent a minimum of 2,000 freshers each quarter.
Wipro, too, exercised warning. “We now have geared ourselves for normal campus hiring, however we’re conscious to not onboard extra individuals than we are able to deploy,” warned Govil throughout Wipro’s 16 April earnings convention. Wipro introduced in round 10,000 freshers in FY25.
In the meantime, Tech Mahindra opted to not decide to a hiring quantity, highlighting that demand visibility stays questionable. The corporate recruited 6,100 campus hires final fiscal 12 months.
Curiously, regardless of the headwinds, 4 of the 5 majors—TCS, Infosys, Wipro, and Tech Mahindra—nonetheless managed to increase their workforce, including between 722 and 6,433 workers every. HCLTech, nevertheless, trimmed its headcount by 4,061 within the final fiscal 12 months.
Any Affect of Generative AI?
Since Indian IT has claimed to be making vital progress in generative AI over the past 12 months, it seems that this improvement has impacted the hiring cycle for corporations. However TCS denies it. “We don’t see any influence on hiring due to AI,” Kakkad mentioned when requested about its influence on upskilling workers.
In the meantime, the attrition for every agency has elevated this quarter, with causes like competitors from GCCs and different shoppers. Cognizant and Infosys have subtly acknowledged this competitors.
Cognizant recognised the menace from GCCs on expertise retention and hiring. The 2024 annual report famous that Cognizant sees competitors from shoppers’ in-house expertise assets, resembling GCCs, which may present a lower-cost various to its providers.
In the course of the firm’s This fall FY25 outcomes final week, Infosys CFO Jayesh Sanghrajka was requested in regards to the elevated attrition fee and if the agency is shedding center administration due to GCCs. Whereas he didn’t fully deny it, Sanghrajka identified that though the general headcount has elevated, attrition might be excessive due to elevated competitors, together with from GCCs.
All this comes after questions had been raised in regards to the shrinking bench dimension of Indian IT companies. In line with a latest report by Moneycontrol, TCS, Wipro, Infosys, and HCLTech have been decreasing their bench sizes and length for the previous 18 months to deal with slowing income development.
The typical bench time has dropped from 45-60 days throughout FY20-21 to only 35-45 days presently. This pattern is anticipated to worsen in 2026.
Indian IT has pushed utilisation charges greater, from historic norms of 70-75% to present targets of 80-85%. This greater threshold creates a extra demanding surroundings for professionals, with a lowered tolerance for unbilled time.
For context, Infosys reported utilisation of 80.7% for the total FY24 and 82% for the fourth quarter, which they indicated was nonetheless under their consolation stage of 84-85%.
It’s unclear how Indian IT is anticipated to rent freshers or give extra hikes this 12 months.
The put up Indian IT Stays Cautious with Freshers and Hikes This Yr appeared first on Analytics India Journal.
