More job losses? 10,000 freshers from major IT firms Infosys, Wipro and TCS await onboarding: Report

  • India's IT sector is facing onboarding delays, with 10,000 freshers awaiting onboarding in companies like TCS, Infosys, Wipro among other companies

Written By Karishma Pranav Bhavsar
Updated13 Jun 2024, 12:25 PM IST
India's IT sector is facing onboarding delays, with 10,000 freshers
India’s IT sector is facing onboarding delays, with 10,000 freshers(Bloomberg)

India's major IT sector is causing major onboarding delay issues for freshers. The IT employee union Nascent Information Technology Employees Senate (NITES) data revealed that at least 10,000 freshers who were offered jobs in the past two years have not yet been onboarded by IT companies, Times of India reported. 

As per the report, Harpreet Singh Saluja, the President of the IT employee union, said that candidates who were offered positions in companies including TCS, Infosys, Wipro, Zensar, and LTIMindtree have complained to the labour union about delays in onboarding. These grievances involve both top-tier and mid-tier IT companies, as reported by the TOI.

Also Read: New government must focus on jobs, get more women to join labour force

The report added that the delay in onboarding freshers is mainly due to business uncertainty in North America and Europe, where indications of a slowdown have made clients cautious about IT expenditures.

In a company like Infosys, the candidates were informed via email that their joining would depend on business needs, and they would receive notification 3-4 weeks before their start date, according to a review by the daily.

Also Read: Over 8,000 IITians couldn’t get jobs in 2024 campus placement drive, pay scale dipping below 10 lakh: Report

Wipro, too, has not onboarded campus offers made to candidates two years ago. "The year before last, we went to campus and made many offers. We are yet to honour those. We will finish those offers and then hire new freshers. We will induct freshers this year, but we cannot give a number as the macro environment is uncertain," Wipro CHRO Saurabh Govil had said during a recent earnings call, as quoted by TOI.

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Krishna Vij, the business head of IT staffing company Teamlease, stated that about 3-5 per cent of freshers recruited by leading IT services firms in 2022 are yet to begin their onboarding process. "This could be due to lack of project visibility, and employers focus on the required skill sets and job readiness of the candidates,” Vij said as quoted by the newspaper.

Drop in headcount in IT major firms

IT majors like TCS, Infosys, and Wipro recently announced their January-March quarter results for fiscal 2023-24 (Q4FY24). They reported a full-year decrease in their total employee headcount for the entire fiscal. Cumulatively, the three software services exporters reported a full-year decline of 63,759 in headcount numbers during the entire financial year 2023-24 (FY24).

For the first time since TCS was listed in 2004, a decrease in full-year headcount was reported. FY24 saw a reduction of 13,249 employees, bringing the total workforce to 601,546 employees as of March 31st.

Also Read: Google layoffs: It is about taking the time to do it correctly and well, says CEO Sundar Pichai

In Infosys, a decline in full-year headcount was reported for the first time in 23 years since 2001. The FY24 headcount dropped by 25,994 and the total workforce stood at 317,240 – a 7.5 per cent drop annually. Wipro, on the other hand, reported a decline in full-year headcount for the second consecutive year. The FY24 headcount dropped by 24,516 employees, and the total workforce stood at 2,34,054 employees at the end of March 31, 2024.

 

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First Published:13 Jun 2024, 12:25 PM IST
HomeCompaniesMore job losses? 10,000 freshers from major IT firms Infosys, Wipro and TCS await onboarding: Report

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