1 month ago
Top IT firms boost productivity even as hiring slows
Indian IT companies are getting better at making money with each employee, even though they are hiring fewer people.
Big firms like TCS and Infosys are cutting staff or keeping numbers steady but still earning more per worker.
They use new technology like AI to work faster.
Some smaller firms are doing the same, but results vary.
The goal is to grow profits without adding too many workers.
Tier‑I IT firms in India are boosting revenue per employee (RPE) while cutting or holding headcount.
TCS cut 3.1% workforce but raised RPE 6.1%; Tech Mahindra cut 1.2% but raised RPE 7.4%.
Infosys and HCLTech grew staff and RPE, showing balanced hiring and productivity gains.
Tier‑II firms show mixed results: Mphasis grew headcount and RPE, while Wipro and LTTS saw RPE decline.
AI and higher utilisation are cited as key drivers of productivity improvements across the sector.
- Who
- Tier‑I and Tier‑II Indian IT firms, including TCS, Tech Mahindra, Infosys, HCLTech, Mphasis, Wipro, LTTS, and industry analysts
- What
- Shift from hiring‑led growth to productivity‑led growth, measured by revenue per employee
- Where
- India
- When
- June quarter of fiscal year 2026 (Q1FY27 earnings call)
- Why
- Companies are improving utilisation, AI adoption, and selective hiring to increase productivity while controlling headcount
Key facts
- Industry
- Indian IT services
- Key Metric
- Revenue per employee (RPE)
- Major Companies
- TCS, Tech Mahindra, Infosys, HCLTech
- Trend
- Productivity‑led growth
- AI Impact
- Productivity multiplier
Quotes
Sanketh Chengappa
Director‑Professional Staffing and Business Head, Adecco India
“The June quarter reflected stabilisation with pockets of improvement, particularly among Tier‑I firms that sustained revenue growth while maintaining discipline on headcount expansion”
thehindubusinessline.com
“We recruited 20,000 college graduates last year and plan to recruit another 20,000 this year. Around 4,000 joined in the first quarter, while productivity improvements continue”
thehindubusinessline.com
Sources
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