Top 3 Indian IT Giants Witness Exodus Of 64,000 Employees In FY24

India's leading IT services companies, including Tata Consultancy Services (TCS), Infosys and Wipro, are grappled with a substantial exodus of employees in the fiscal year 2024. Reports indicate that 64,000 employees have left these companies, signaling a challenging period marked by weakened global demand and reduced tech expenditures by clients.

Wipro, which announced its Q4 earnings on Saturday, disclosed a decline in headcount numbers to 2,34,054 as of March 2024, down by 24,516 from FY23. Saurabh Govil, Chief Human Resources Officer at Wipro, attributed the immediate headcount reduction to market conditions and operational efficiency.

Infosys, India's second-largest IT services exporter, also reported a significant decrease in its workforce, with total headcount dropping to 3,17,240 employees in March 2024, a decline of 25,994 compared to the previous year. The company's Chief Financial Officer, Jayesh Sanghrajka, highlighted factors such as increased utilisation rates and changes in hiring models contributing to the reduction. However, Infosys registered an attrition rate of 12.6 per cent, indicating ongoing challenges in talent retention.

Similarly, TCS witnessed a decline in its headcount by 13,249 employees, ending the fiscal with 601,546 employees. Despite reporting a 9 per cent growth in net profit for the January-March quarter of FY24, TCS faced challenges in its key overseas markets.

Both Infosys and Wipro have provided cautious outlooks for the upcoming fiscal year, citing global macroeconomic uncertainties impacting client decisions and discretionary spending. Infosys disappointed investors with its forecast of a 1-3 per cent annual revenue growth for FY25, raising concerns about the timing of recovery for the Indian IT industry amidst ongoing challenges.

The Indian IT industry, valued at USD 254 billion, is navigating through a turbulent period, with companies adapting to changing market dynamics and focusing on strategies to sustain growth amidst uncertainty.