BENGALURU: Mid-sized IT firms have witnessed a consistent rise in their workforce, in contrast to the receding hiring trend seen in their larger peers such as TCS, Infosys, and Wipro.
The growth in business, increased focus on large deal velocity, building domain-specific capabilities, and improved delivery footprint have been driving factors for the steady increase in business and headcount among mid-sized companies, with some even reporting double-digit growth.
Coforge, for instance, grew 13.3% in constant currency in the 2023-24 financial year, added 1,500 employees, bringing its total employee count to 24,726. Similarly, Pune-based KPIT has increased its headcount by 1,843 during the same period. Cyient and Happiest Minds have increased their workforce by 289 and 250 employees respectively.
Phil Fersht, CEO of US-based IT advisory HFS Research, stated that the demand for mid-cap companies is driven by their ability to cater to small and short-term projects, as they are more flexible to clients’ needs. This business approach has consequently led to an increase in their headcount.
In contrast, TCS and Infosys, India’s leading IT services companies, only increased their employee count during the pandemic-induced IT boom. During the 2023-24 year, TCS and Infosys experienced modest constant currency revenue growth of 3.4% and 1.5% respectively, while Wipro and Tech Mahindra saw declines of 4.4% and 4.7%. In the 2023-24 financial year, the combined headcount of TCS, Infosys and Wipro dropped by nearly 64,000.
The larger companies have been emphasising internal utilisation to improve margins. TCS reported that 33% of its fulfilment is through internal resources, while Tech Mahindra increased its internal resource utilisation for vacancies from 60% in the financial year ending March 2023 to 70% in the current year. “Mid-cap IT firms are navigating the current market dynamics with a different strategy compared to larger players,” Aditya Mishra, MD & CEO of CIEL HR, said.
The growth in business, increased focus on large deal velocity, building domain-specific capabilities, and improved delivery footprint have been driving factors for the steady increase in business and headcount among mid-sized companies, with some even reporting double-digit growth.
Coforge, for instance, grew 13.3% in constant currency in the 2023-24 financial year, added 1,500 employees, bringing its total employee count to 24,726. Similarly, Pune-based KPIT has increased its headcount by 1,843 during the same period. Cyient and Happiest Minds have increased their workforce by 289 and 250 employees respectively.
Phil Fersht, CEO of US-based IT advisory HFS Research, stated that the demand for mid-cap companies is driven by their ability to cater to small and short-term projects, as they are more flexible to clients’ needs. This business approach has consequently led to an increase in their headcount.
In contrast, TCS and Infosys, India’s leading IT services companies, only increased their employee count during the pandemic-induced IT boom. During the 2023-24 year, TCS and Infosys experienced modest constant currency revenue growth of 3.4% and 1.5% respectively, while Wipro and Tech Mahindra saw declines of 4.4% and 4.7%. In the 2023-24 financial year, the combined headcount of TCS, Infosys and Wipro dropped by nearly 64,000.
The larger companies have been emphasising internal utilisation to improve margins. TCS reported that 33% of its fulfilment is through internal resources, while Tech Mahindra increased its internal resource utilisation for vacancies from 60% in the financial year ending March 2023 to 70% in the current year. “Mid-cap IT firms are navigating the current market dynamics with a different strategy compared to larger players,” Aditya Mishra, MD & CEO of CIEL HR, said.