10,000+ New Graduates not Hired by Indian IT Companies due to Economic Uncertainty

By Consultants Review Team Friday, 14 June 2024

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Consultants Review Team

Over 10,000 new graduates are left in a state of uncertainty with no set date of joining due to the postponement of their onboarding by many prominent Indian IT companies, such as Infosys, Wipro, and TCS. The cautious approach in light of economic difficulties in important markets is reflected in this postponement, which affects candidates who have been offered positions in the last two years.

President of the nascent Information Technology Employees Senate, Harpreet Singh Saluja, says the union has got a lot of complaints from applicants waiting for dates to join major and mid-tier IT companies like TCS, Infosys, Wipro, Zensar, and LTIMindtree.

For example, Infosys gave applicants notice that their Date of Joining (DOJ) will be notified with three to four weeks in advance and would be decided depending on business requirements. Only 11,900 college recruits were employed by Infosys in FY24, a considerable 76% decrease from the 50,000 freshmen hired the year before. In a similar vein, Wipro still hasn't honored campus offers made over two years ago.

Wipro's CHRO Saurabh Govil stated in a recent earnings conference that the company will complete outstanding offers before hiring new fresh talent, while exact figures are still unknown because of the financial environment. In the meanwhile, individuals are being evaluated for possible onboarding by Zensar, a mid-tier player, based on their performance.

The main cause of the reluctance to onboard is the economic unpredictability in North America and Europe, where clients are wary about investing money on IT in the face of slowing indicators. This cautious attitude is supported by quarterly results and projections from several IT companies, which resulted in a notable drop in total staff at TCS, Infosys, and Wipro of around 64,000 in the fiscal year that ended in March.

Capgemini India CEO Ashwin Yardi stated that the company is now reviewing this year's college hiring stats and intends to restrict them after employing almost 30,000 freshmen from campuses the previous year. This change is in line with a larger industry trend that seeks to increase efficiency without significantly raising headcounts.

Responses to inquiries about these delays from TCS, Infosys, Wipro, Zensar, and LTIMindtree were not received right away.

The tardiness in integrating recently graduated students highlights the cautious stance that Indian IT majors are currently taking in the face of global economic concerns. This stance aims to carefully integrate recruiting efforts with changing market dynamics and customer demands. 

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