Attrition stable in Q1; no plans for hiring freshers yet: Infosys

Salil Parekh, CEO, of Infosys in a public announcement of the tech giant's quarterly earnings said that the attrition rate in the organisation remained significantly stable after voluntary attrition for IT services declined to 17.3 per cent from 28.4 per cent in Q1 FY 23.

However, the company will not be looking forward to hiring freshers in the coming months. This decision of Infosys reflects the overall sentiment in the Indian IT sector which had witnessed some significant layoffs in the past few months. 

#InfosysQ1FY24 results announced. Highlights to follow. pic.twitter.com/EH8yX4ixPE

— Infosys (@Infosys) July 20, 2023

Infosys’s total workforce has shrunk by around 6,940 employees while HCLTech recorded a headcount fall of  2,506 employees. In the same line of events, Wipro’s had to lose 8,812 employees and only TCS remained offshore to the layoff season by adding 523 employees to the fleet. With this, Infosys has 336,294 total employees as on June 30, 2023. No fresh hiring is expected in the near future. 

"As freshers start getting deployed, we will calibrate the hiring for FY24 based on the available pool of employees, growth expectations and attrition trends," Chief Financial Officer Nilanjan Roy told analysts last quarter.

Infosys Q1 2023 results announced

Indian tech giant Infosys recently released its Q1 results consolidating the net profit of Rs. 59.45  billion for three months. This is a 10.9 per cent increase in profits when compared to the last year. 

Nevertheless, the reported figure missed analysts' expectations, as Refinitiv data had estimated a profit of 61.41 billion rupees by the end of Q1 2023. 

Salil Parekh, also said that Infosys would be working on 80 Generative AI projects for clients and the company has a long list of projects in the pipeline. Notwithstanding the cautious outlook, Infosys witnessed a surge in significant deal signings in the first quarter, amounting to $2.3 billion, in contrast to $1.7 billion during the corresponding period last year. This rise signifies clients' readiness to forge strategic partnerships, amidst the challenging business landscape.

Amidst the persisting challenges, Infosys and fellow IT services firms are determined to navigate through the uncertainties. The growing demand for AI and other deep technologies opens up the space for Indian tech giants to rebuild and reshape their human resource requirements. Their focus lies on seizing emerging opportunities, adapting to evolving client demands, and delivering innovative solutions, all of which are essential for ensuring sustained growth in the current business climate.

(With Reuters Inputs)