‘Hiring by IT majors dipped by 24 percent’

The Big Five software exporters – TCS, Infosys, Wipro, HCL and Cognizant – together added net 24 per cent fewer employees in 2015 at 77,265, thanks to their automation drive. 

The massive plunge in net additions was led by the US-listed, Chennai-based Cognizant Technologies (down 74.6 per cent from 2014) and HCL Technologies (down 71 per cent) which have been very keenly focusing on improving utilisation rates through automation, says a report by city-based brokerage Centrum Broking. 

“Software vendors are focusing on automation and we believe that FY16 will be an inflection point. We see rapid scope for vendors improving efficiencies through expanding automation across multiple projects and service lines owing to sheer competitive pressure. 

The result is that these five companies have net added 24 per cent fewer employees in 2015,” the report notes. This came at a time when these companies’ combined dollar revenue grew 9.8 per cent.” 

The report also notes that the drop would have been much higher had it not been for Infosys, which made a whopping 111.4 per cent net addition at 23,745 in the year.