Cognizant, Tech M resume hiring now
IT majors that maintain optimum hiring recently expected to perform better than those hired extensively
Due to high growth in last couple of years, many companies had over-hired. That is not the case for Cognizant and Tech Mahindra. These companies’ turnaround is starting now and that is the reason that hiring is better than peer firms. As they had not over-hired, their hiring is more balanced now -- Pareekh Jain, founder, Pareekh Consulting, tells Bizz Buzz
Recruitment Back In Action
- Tech M, Cognizant had not over-hired in last 2 fiscals
- Most other IT firms are stuck with large benches owing to growth slump
- Leadership changes at Tech M, Cognizant raise hopes of turnaround
Bengaluru: Headcount addition by Cognizant and Tech Mahindra is first sign of a possible turnaround in these two IT services firms amid a slowing demand environment.During the second quarter ended September, most large and mid-tier firms reported a fall in their total headcount. Usually, employee count is considered as the lead indicator of growth prospects for IT firms. When the going is good, IT firms require more staffers for executing projects.
In this perspective, experts opined that both Tech Mahindra and Cognizant had not hired in large numbers during the last two financial years unlike their peers.
“Due to high growth in last couple of years, many companies had over-hired. That is not the case for Cognizant and Tech Mahindra. These companies’ turnaround is starting now and that is the reason that hiring is better than peer firms. As they had not over-hired, their hiring is more balanced now,” Pareekh Jain, an IT outsourcing advisor &Founder of Pareekh Consulting told the BizzBuzz.
Nasdaq-listed Cognizant, which has a major workforce operating out of India, saw its total headcount at the end of Septemberat 346,600, an increase of 1,000 from the previous quarter. Itsvoluntary attrition declined to 16.2 per cent from 19.9 per centreported in the previous quarter.
Similarly, Tech Mahindra reported a net employee addition of 2,307 sequentially for the quarter ended September 30, bucking the industry-wide trend of slowdown in hiring. Both these companies have seen leadership changes in the recent quarters. While former Infosys hand, Ravi Kumar S has joined Cognizant as the new CEO, another Infosys veteran Mohit Joshi has been named as the next CEO of Tech Mahindra, who will take over charge from next year.
Experts opined that both the firms have taken several steps in terms of organisational restructuring and sales channels to accelerate growth, which have started to play out in some extent.
“Hope of turnaround in both these companies has emerged after the leadership changes. Especially, Cognizant is showing some early signs of turnaround. The company is winning large deals, and they are adding people. So, the company seems to be getting its mojo back. Now, it has to be seen whether this growthbecomes sustainable or not,” Jain added.
According to reports, hiring by nine out of 10 Indian IT companies fell in the July-Septemberquarter, making it the first time when overall headcount has shrunk in 25 years.Top four IT firms- Tata Consultancy Service, Infosys, HCL Tech and Wipro- havecumulatively cut their workforce by about 38,950 employees in the first half of this fiscal.