In the fiscal year 2024-25, Global Capability Centres (GCCs) have significantly outpaced Indian IT firms in talent acquisition, hiring nearly ten times more professionals, according to Quess Corp. This aggressive recruitment has led to a 20-25% lateral movement within the industry, intensifying the competition for skilled tech talent
Data from Xpheno indicates that greenfield GCCs onboarded approximately 110,000 employees in 2024, a substantial increase from 60,000 the previous year. Notably, about 53% of these new hires were sourced from existing IT services companies, contributing to attrition rates as high as 16% in the sector
To counter this trend, Indian IT firms are ramping up fresher hiring initiatives. Tata Consultancy Services (TCS) exceeded its target by onboarding 42,000 graduates in FY25 and plans to maintain or slightly increase this number in FY26. Similarly, HCLTech aims to add 2,000-3,000 freshers each quarter, having already added 7,000 in FY25
Moreover, around 40% of IT companies are adopting remote and hybrid work models to tap into talent pools in tier-2 cities and overseas markets, as reported by TeamLease. This shift not only broadens the talent base but also aligns with the preferences of a workforce increasingly valuing flexibility
The evolving landscape underscores the need for Indian IT firms to reassess their talent acquisition and retention strategies, focusing on competitive compensation, flexible work arrangements, and robust fresher training programs to maintain their edge in a rapidly changing industry
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