New Delhi

In the last fiscal year (FY24), the Indian IT services sector experienced a decline in revenue growth due to global economic challenges. Leading IT companies such as Infosys, Tata Consultancy Services (TCS), Wipro, and Tech Mahindra saw a reduction in their employee numbers, with a total drop of nearly 70,000 employees.

Infosys witnessed a decrease in its employee headcount by 25,994, while TCS saw a reduction of 13,249 employees. Similarly, Wipro’s employee strength fell by 6,180 in the fourth quarter of FY24, resulting in a total decline of 24,516 for the full year. Tech Mahindra’s total headcount in FY24 decreased by 6,945 employees. However, HCLTech was an exception with a net addition of 1,537 employees, bringing its total headcount to 227,481 in the last fiscal year.

According to a recent report by Crisil Ratings, the IT services sector in India is projected to experience another year of muted revenue growth, estimated at 5-7 per cent in FY25. This slowdown in revenue growth is attributed to reduced technology spending, which is expected to persist in the current fiscal year.

The pullback on fresh talent addition by IT service companies resulted in a 4 per cent reduction in headcount in December 2023 compared to the previous year. Aditya Jhaver, Director of CRISIL Ratings, highlighted that the ongoing slowdown in technology spending will continue to impact the revenue growth of IT service providers.