According to a report by cognitive intelligence platform UnearthInsight, Indian IT companies are likely to hire roughly 360,000 freshers in the fiscal year 2022.
According to the report, IT Industry Q3 Insights & FY22 Forecast, issued on Thursday, attrition is expected to rise to 22-24 percent, up from 22.3 percent the previous quarter and 19.5 percent the quarter before. In the fiscal year 2023, this is predicted to drop to 16-18 percent.
According to the report, mid-tier and small IT firms offered an average income increase of 8-12 percent, as well as 15-20 percent for employee promotions to keep employees.
According to the report, revenue growth for IT services companies would be 19-12 percent in fiscal 2022, the greatest ever for the industry.
“Despite the nationwide severe pandemic wave in the last few weeks, the IT industry’s growth outlook remains unchanged,” said Gaurav Vasu, founder, and CEO of UnearthInsight. “This financial year, the industry is likely to achieve best-ever revenue growth and will continue to add workforce as per estimates.” “While industry’s wage bills are on the rise, attrition levels remain a source of concern, and it’s likely to persist for another quarter before improving in the coming fiscal year.”
On the back of price, agility, and partnerships, this growth momentum is likely to continue in fiscal 2023 and fiscal 2024. By fiscal 2022, the Indian IT services market is expected to reach $230 billion to $240 billion, owing to strong growth among the top 15 to 20 Indian IT services businesses, as well as strong GCC and captive industry expansion.
“Key IT organizations are seeing excellent growth in their cloud and product & platform businesses, while low-code and no-code platform penetration is gaining substantial traction,” Vasu said.
According to the research, staff costs or wage bills (excluding contractors) are likely to rise by 0.5-1 percent among tier-1 and tier-2 players in FY23. Margins shrank in the third quarter of fiscal 2022 as a lack of talent put pressure on hiring, retention, and subcontracting costs.
Given the substantial digital transformation, platform implementation, product and cloud implementation transactions across BFSI, retail, and healthcare clients, total contract value (TCV) is projected to continue robust.
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