| |FEBRUARY 20228Indian IT Companies to Recruit 360,000 Freshers in FY22BY CEO INSIGHTS TEAMIN FOCUSIN FOCUSIndian IT companies are expected to hire about 360,000 freshers in fiscal year 2022, according to a study by cognitive intelligence platform UnearthInsight. The study, `IT Industry Q3 Insights & FY22 Forecast' released on Thursday also said there is likely to be an increase in attrition to 22-24 percent from 22.3 percent in the previous quarter and 19.5 percent in the quarter before that. This is expected to start coming down in fiscal 2023 to 16-18 percent.Mid-tier and small IT companies handed-out an average wage hike of 8-12 percent, along with 15-20 percent for employee promotions for retention, the study said. The study expects IT services companies to post revenue growth of 19-12 percent in fiscal 2022, the highest ever for the industry."Despite the nationwide severe pandemic wave in last few weeks, the IT Industry growth outlook remains intact, and this financial year, the industry is likely to achieve best ever revenue growth and will continue to add workforce as per the estimates. While Industry's wage bills are on an upward trend, attrition levels continue to be a matter of concern for industry and it's likely to continue for another quarter before it starts improving from next FY", said Gaurav Vasu, Founder & CEO at UnearthInsight.This growth momentum is expected to continue in fiscal 2023 & 2024 on the back of pricing, agility and partnerships. The Indian IT services market is likely to reach $230-240 billion by fiscal 2022, which is largely driven by growth amongst the top 15 to 20 Indian IT services firms with robust GCC and captive industry growth."On the technology side, key IT firms are witnessing excellent growth in their cloud and product & platform business, whereas penetration of low-code and no-code platforms is gaining significant momentum", Gaurav said.The report estimates 56-57 percent employee costs or wage bill (excluding contractors) across tier-I and tier-II players, and this is expected to go up by 0.5-1 percent in FY23. During the third quarter of fiscal 2022, margins declined, as talent availability put pressure on hiring, retaining and subcontracting costs. Total contract value (TCV) is also expected to remain strong, given the large digital transformation, platform implementation, and product & cloud implementation deals across BFSI, retail, and healthcare clients. KEY IT FIRMS ARE WITNESSING EXCELLENT GROWTH IN THEIR CLOUD AND PRODUCT & PLATFORM BUSINESS, WHEREAS PENETRATION OF LOW-CODE AND NO-CODE PLATFORMS IS GAINING SIGNIFICANT MOMENTUM
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