A slowdown in hiring by India’s top IT companies has resulted in a sharp increase in the industry’s profit per employee in Q3FY23.
The top four IT companies earned a net profit of 1.7 lakh per employee during October-December 2022, up 8.6 per cent from Rs 1.57 lakh in Q2FY23 and 16.3 per cent from a record low of Rs 1.47 lakh in Q1FY23. Earnings per employee in the third quarter were, however, still down 0.9 per cent on a year-on-year (YoY) basis. In FY21, these four companies earned a net profit of Rs 1.95 lakh per employee during the October-December quarter.
The four IT companies —Tata Consultancy Services, Infosys, HCL Technologies, and Wipro — together added only 1,940 employees in Q3FY23, the fewest in the past five years, barring the pandemic hit Q4FY20 and Q1FY21 when these companies had reported a decline in their headcount on a net basis.
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