Hiring at top ten IT firms sees fourfold increase in 2018
outsourcing contracts have seen some employees of clients join the workforce of technology vendors.
For instance, 9,000 of the 13,514 people added by Wipro in 2018 joined from Alight Solutions as part of an outsourcing contract. Wipro won a $1.6 billion deal from Alight Solutions LLC, the former benefits administration and human-resources outsourcing business of Aon Plc in September last year.
Infosys’s contract with Verizon and TCS’S two mega contracts—the over $2 billion, 10-year contract from Transamerica Life Insurance Co. and $1.36 billion over 10 years from a unit of British insurer Prudential Plc—also saw the two IT firms absorb employees from their clients. The Transamerica contract alone added 2,200 employees to TCS’S workforce, which totalled 417,929 at the end of December.
Not many expect IT firms to add as many people in 2019 as they added last year.
“There is no structural change to conclude that the pace of hiring will continue. The industry is going through a change and faces the same pressure from automation. Of course, we will continue to hire in the US. But overall hiring depends on client budgets, which in turn is tied to macroeconomic growth,” an executive at Wipro said on the condition of anonymity.
“Talent in areas such as algorithm development and automation is increasingly scarce and expensive, which will stifle resources and put increased pressure on services firms to train junior or midlevel staff at a faster pace than ever. I predict hiring will slow in the second half of 2019 and not pick up aggressively until early 2021,” said Fersht of HFS Research.
A large number of big IT outsourcing contracts have seen some employees of clients join the workforce of technology vendors.