IT companies delay fresher on-boarding
According to The Economic Times, IT companies are delaying fresher on-boarding.
TCS, Infosys, Wipro, HCL Tech on-boarded more than 2 lakh freshers in FY22, who are being deployed in various projects across companies after the training and on boarding period of three to six months. Freshers hiring in FY23 could be at a much slower pace as companies are facing macro related impact on tech spending in a few pockets of their pie. In our view, the companies will honour fresher offers (they have been vocal on the same) but this could be in a staggered manner as per project requirement. It could also be an indication that demand environment may not be conducive in FY24 and hiring is being aligned as per the same. It could also help in improvement in utilisation in the coming quarters, which had an impact on the margin.