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Indian IT Companies To Recruit 360,000 Freshers In Fy 22

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Indian IT Companies To Recruit 360,000 Freshers In Fy 22

By CEOInsightIndia Team, 0

Indian 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% from 22.3% in the previous quarter and 19.5% in the quarter before that. This is expected to start coming down in fiscal 2023 to 16-18%.

Midtier and small IT companies handed out an average wage hike of 8-12%, along with 15-20% for employee promotions for retention, the study said. The study expects IT services companies to post revenue growth of 19-12% 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 and fiscal 2024 on the back of pricing, agility, and partnerships. The Indian IT services market is likely to reach $230 billion to $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 nocode platforms is gaining significant momentum”, Gaurav said.

The report estimates 56-57% employee costs or wage bill (excluding contractors) across tier-1 and tier-2 players and this is expected to go up by 0.5-1% 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 trans formation, platform implementation, product and cloud implementation deals across BFSI retail and healthcare clients.