{"id":43974,"date":"2024-05-06T08:45:52","date_gmt":"2024-05-06T08:45:52","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/06\/it-companies-cognizant-capgemini-hired-1-5-lakh-less-hands-in-2023\/"},"modified":"2024-05-06T08:45:52","modified_gmt":"2024-05-06T08:45:52","slug":"it-companies-cognizant-capgemini-hired-1-5-lakh-less-hands-in-2023","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/06\/it-companies-cognizant-capgemini-hired-1-5-lakh-less-hands-in-2023\/","title":{"rendered":"IT companies Cognizant, Capgemini hired 1.5 lakh less hands in 2023"},"content":{"rendered":"
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The cumulative hiring by IT majors<\/a> Cognizant and Capgemini<\/a> globally declined by 151,607 employees in 2023 as compared to 2022, as per their regulatory filings.<\/p>\n

Both companies have a majority of their employees based out of India \u2014 together, they employ around 400,000 people here. In 2022, while US-based Cognizant<\/a> hired 132,000, French IT consultancy firm Capgemini recruited 140,789 employees in total, excluding people hired through acquisitions. But in 2023, Cognizant\u2019s hiring number fell to just over 60,000, while Capgemini hired about 61,182. In other words, the numbers fell by 72,000 at Cognizant and 79,607 for Capgemini from the prior year.<\/p>\n

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Top Indian IT service providers like Tata Consultancy Services, Infosys and Wipro too have seen a drop in their headcount, which declined by around 70,000 in total in the fiscal year ended March 31.<\/p>\n

Peter Bendor-Samuel, chief executive of consultancy firm Everest Group, said these service providers over-hired during Covid to offset high attrition and on expectation that the high industry growth rate would continue. However, the industry has contracted, creating an oversupply of talent in these firms, he added.<\/p>\n

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ETtech<\/span><\/figure>\n<\/div>\n

Because of macro uncertainty, natural attrition didn\u2019t help them, and the companies are now significantly reducing new talent intake. While Indian IT service providers are shy of talking of layoffs, in the second quarter of 2023, Cognizant initiated the programme aimed at simplifying its operating model, optimising corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. In 2023, Cognizant incurred $115 million in employee separation costs and $114 million in facility exit and other costs, totalling $229 million.<\/p>\n

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\u201cAnother factor which is also contributing to the firms\u2019 hesitancy to hire is the belief that Gen AI will reduce the need to hire L1s (in level 1) or freshers,\u201d Samuel added.<\/p>\n

Cognizant\u2019s employee count<\/a> reduced by 7,100 in the March quarter of FY24 to 344,400 from a year earlier. About 250,000 of its employees are based in India. At the Capgemini Group, the total headcount dropped to 337,200 as on March 31, 2024, down 6% from a year earlier. Offshore workforce represented 57%, or 192,000 employees, of the total headcount, down from 58%, or 207,300 employees, in March last year. Indians comprised about 66% of Capgemini\u2019s total headcount as on December 31, 2023.<\/p>\n

Pareekh Jain, CEO of EIIRTrend, pointed out two factors for the fall in hiring numbers. \u201cThere is an overall tech spend slowdown, and IT firms are relying on inorganic growth than on their organic growth. And that\u2019s why you see there are more numbers of acquisitions at a time when hiring is at snail\u2019s pace. They are reluctant to hire and train.\u201d<\/p>\n

Jain added: \u201cThe second factor is that in these times of AI and GenAI, companies are also finding it difficult to get the right talent and skills for such requirements. Market has no matching supply for these skills.\u201d<\/p>\n<\/div>\n


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The cumulative hiring by IT majors Cognizant and Capgemini globally declined by 151,607 employees in 2023 as compared to 2022, as per their regulatory filings. Both companies have a majority of their employees based out of India \u2014 together, they employ around 400,000 people here. In 2022, while US-based Cognizant hired 132,000, French IT consultancy […]<\/p>\n","protected":false},"author":2,"featured_media":43975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-42031747\/et-logo.jpg","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[41362,7537,771,45116,5128,15121,45115,35666,5957],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/43974"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=43974"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/43974\/revisions"}],"predecessor-version":[{"id":43976,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/43974\/revisions\/43976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/43975"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=43974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=43974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=43974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}