Three major IT firms have announced their Q3 financial results. In the December 2022 quarter, HCL Tech has carried more hiring than compared to peers Infosys and Tata Consultancy Services (TCS). While the net addition in HCL Tech and Infosys has slowed down in Q3FY23, on the other hand, TCS has reduced its workforce during the quarter. All eyes are now set on Wipro which is going to present its Q3 earnings on January 13.
As per the regulatory filing, HCL Tech’s net addition stood at 2,945 employees in Q3 taking the total headcount to 222,270 employees compared to the count of 219,325 employees in Q2FY23. Notably, HCL Tech has recorded consistent upside in its workforce so far in the nine months of FY23. Year-on-year, the company’s headcount rose by 24,493 employees in Q3FY23.
In its audit report, HCL Tech highlighted that they have added 5,892 freshers.
However, in the September 2022 quarter, the company made an addition of 8,359 employees quarter-on-quarter. In June 2022 period, the headcount was around 210,966 employees.
Notably, the company’s attrition rate dropped significantly to 21.7% in Q3FY23 compared to the 23.8% level which stayed during Q2 and Q1 of FY23.
The company’s total employee count stood at 3,46,845 in Q3FY23 — a net addition of 1,627 employees compared to 3,45,218 employees posted in Q2 of FY23. Compared to the Q3FY22 quarter where the headcount was at 2,92,067 employees, Infosys’ net addition stood at 54,778 employees in Q3FY23.
During September 2022 quarter, Infosys hired more compared to its peers like Wipro, TCS, and HCL Tech for the second straight quarter. In Q2FY23, the company’s net addition stood at 10,032 employees year-on-year.
In terms of attrition, Infosys recorded an attrition rate of IT services at 24.3% in Q3FY23 down by a huge 2.8% from 27.1% in September 2022 quarter. During the June 2022 quarter, the attrition rate was 28.4%. Infosys expects the attrition rate to decline further in the near term.
Unlike HCL Tech and Infosys, TCS has reduced its workforce by 2,197 employees in Q3FY23. The company’s workforce stood at 613,974 by end of the December 2022 quarter versus 616,171 employees in the September 2022 quarter.
In Q2FY23, the company had added 9,840 employees compared to the June 2022 quarter where the headcount stood at 606,331 employees.
On the positive front, TCS’ IT services attrition rate inched lower to 21.3% on an LTM basis from 21.5% in Q2FY23. TCS said, the attrition rate “is expected to fall further in the coming quarters.”
Wipro will be presenting its financial performance for the third quarter of FY23 on Friday.
For Q3FY23, Emkay Global in its report on Wipro said, ” We expect EBIT margin of IT services to expand by 40bps sequentially on account of operational efficiencies, employee pyramid rationalisation, and rupee depreciation, negating the full quarter impact of the salary hike.”
Wipro made the lowest hiring in Q2 compared to its peers. The company’s headcount stood at 259,179 employees in Q2FY23 compared to the count of 258,574 employees as of June 30, 2022 – a net addition of merely 605 employees. In Q1FY23, the company added 15,446 employees. While it onboarded more than 10,000 freshers during this period.