Tech Mahindra has defied the industry-wide trend of slowed hiring due to macroeconomic challenges and demand uncertainties, as shown by its Q3 results. The IT firm added around 6,464 employees for the quarter ending on 31 December, marking the second consecutive quarter of net additions. In the previous quarter, Tech Mahindra expanded its workforce by 2,307, bringing the total headcount for Q3 to 157,068.
The attrition rate decreased from 11% in Q2 to 10% in Q3, continuing the declining trend since the start of fiscal year 2023. The company’s spokesperson also emphasized its focus on building generative AI talent, with around 10,000 associates being upskilled by Q2. Tech Mahindra’s current strategic focus is on diversifying further into segments such as BFSI, healthcare, and life sciences. Currently, 40% of the company’s revenue comes from the CME business.
On the other hand, TCS’s employee base shrank by 5,680 in the three months ending December, bringing the total to 603,000. A similar decline was observed in the previous quarter, with the company attributing the reduction to maintaining efficiency in a “reduced demand” environment, suggesting voluntary attrition rather than layoffs.
