1 month ago
Just-in-time hiring could hurt IT firms' project wins
Indian IT companies are hiring new workers only when they get a new job, instead of keeping a big team ready.
This means they have fewer people on hand to start big projects quickly.
Some big companies like TCS added many workers, but others like Infosys and HCLTech lost workers.
Because of this, clients might choose other companies that have more people ready.
The companies are starting to hire fresh graduates again, hoping to build stronger teams for the future.
Top Indian IT firms added only 5,400 employees in Q1 FY27, far below previous growth.
TCS added 9,000 staff, while Infosys and HCLTech saw headcount declines.
Just‑in‑time hiring means firms recruit after winning projects, reducing bench strength.
Lower bench strength may cause firms to lose large outsourcing deals.
Freshman hiring has begun to recover, with major firms signalling campus recruitment.
- Who
- Top Indian IT firms including Tata Consultancy Services, Infosys, HCL Technologies, and Wipro
- What
- Just-in-time hiring model leading to lower bench strength and risk of losing large outsourcing projects
- Where
- India, with Bengaluru highlighted as a key hub
- When
- First quarter of FY27 (April–June 2027)
- Why
- Slow ramp‑up of legacy projects and short‑term AI projects reduce demand for talent, prompting firms to hire after winning projects
Key facts
- Headcount added Q1 FY27
- 5,400 employees
- TCS headcount added
- 9,000 employees
- Infosys headcount change
- -532 employees
- HCLTech headcount change
- -3,292 employees
- Wipro headcount added
- 888 employees
- Hiring model
- Just-in-time
- Risk to large projects
- Potential loss of big outsourcing deals
Quotes
Pareekh Jain
IT outsourcing advisor and Founder of Pareekh Consulting
“"Net headcount addition is driven by several factors, both reactive, like the trend of headcount over the last several quarters, attrition across various layers of the delivery pyramid, inflow of large deals, etc., and proactive, like intentional shift in the pyramid, onshore vs. offshore delivery mix, deployment of tools and technology for delivery, and so on."”
thehansindia.com
“"IT firms showcase their bench strength (number of reserved employees) to clients for winning large projects as it indicates their quick execution ability. With on-demand hiring followed by many IT service providers now, they may face the risks of losing such outsourcing projects."”
thehansindia.com
Sources
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