Narayan AmmachchiTCS’s recent hiring spree has revived hopes for India’s crestfallen IT services sector.
TCS reported it had hired 5,000 new employees over the past three months, this following waves of layoffs, hiring freezes and other signs of downturn in Indian IT all through 2023.
On Thursday, the Mumbai-based IT giant posted a net profit of US$1.44 billion for the three months ended June, an increase of 8.7% from the same period a year earlier.
The company’s workforce rose to 606,998 from 601,546 at the end of March. This marks the first time in the last 12 months that TCS has expanded its workforce, suggesting a positive trend that could herald a revival for the IT sector.
The Indian IT services industry faced considerable challenges in 2023. Advancements in artificial intelligence (AI) and a slowdown in the US technology market led to a wave of job cuts. Major players like Infosys, Wipro and TCS themselves eliminated over 60,000 positions combined.
TCS’s recent hirings might indicate a shift in the market. This positive development is further supported by reports from LTI, a mid-sized IT services firm, which recently highlighted a current shortage of 20,000 engineers. This underscores a renewed demand for skilled and experienced professionals in the Indian IT sector.
TCS also reported increasing salaries for some employees as part of its efforts to retain top talent.
Add comment