Hir­ing at top ten IT firms sees four­fold in­crease in 2018

Mint ST - - COR­PO­RATE -

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.

MINT

A large num­ber of big IT out­sourc­ing con­tracts have seen some em­ploy­ees of clients join the work­force of tech­nol­ogy ven­dors.

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