With TCS Piping Accenture to become the most valuable IT company in the world, India’s IT sector has successfully negated the naysayers. The trend is further backed by robust hirings, encouraging quarterly results and a rising stock market value.
Last year, India saw hiring activities decline due to the coronavirus pandemic. Now, according to according to professional recruitment services firm Michael Page India’s ‘Talent Trends 2021 Report’, 53 per cent of companies say they are planning to increase their headcounts in 2021.
According to the report, India projects an optimistic outlook for 2021, with 60 per cent of the employers surveyed intending to increase salaries, while 55 per cent of the companies planning to give out bonus payments and 43 per cent of them looking to give out more than one month’s worth of bonus.
The technology boom in India has only further accelerated especially in the software-as-a-service (SaaS), health-tech, edutech and gaming industries with rising demand for professionals in the artificial learning and machine learning space, it said.
Many companies have capitalised on the availability of Indian techies looking to return to India as a result of the pandemic, it added.
Over 74 per cent of technology companies in India expect a 14 per cent rise in headcount and are open to considering talent remotely available, offering flexibility to the right candidate under the hybrid work model.
According to a separate report, with the sharp pickup in demand after the lockdown lows, Indian IT firms have lined up robust hiring plans for 2021-22. So much so that the top four IT firms — TCS, Infosys, HCL Technologies and Wipro collectively plan to hire 91,000 from campuses.
With businesses going virtual, demand for IT services has shot up, which has led to an uptick in hiring for hardware and software professionals, according to jobs portal Naukri.com. “The IT-sector remains one of the least impacted sectors in terms of hiring from the global pandemic,” Naukri.com said in a report released on November 19.
The sector saw upward month-over-month recovery for job listings on Naukri.com, peaking in September for both hardware (63%) and software roles (20%).
India’s largest information technology firms’ earnings beat estimates for the second straight quarter as operations returned to normal. Among the top four software services providers, TCS and Infosys Ltd. guided for double-digit growth in the financial year 2022. Wipro upped its guidance for the fourth quarter but didn’t provide an outlook for the next fiscal. HCL Technologies Ltd. raised its FY21 margin guidance and revenue growth forecast for the fourth quarter.
All the four companies reported sequential revenue growth in the third quarter on account of higher investments toward cloud computing, artificial intelligence and internet of things, and new deals. Infosys posted the highest 5.5% growth in top line, followed by TCS, Wipro and HCL Tech.
Work from home and lower travel expenses helped Indian IT firms to post an expansion in margin for the second quarter in a row. While TCS posted the highest margin among peers during the quarter, Wipro saw the biggest jump over the preceding three months.