Hiring slowdown lifts India's top IT companies' profit per employee

Productivity improves in terms of revenue per employee

Krishna Kant Mumbai
Hiring slowdown lifts India's top IT companies' profit per employee

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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First Published: Jan 17 2023 | 10:49 PM IST

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