Adani Enterp. 2534.05↓-10.30(-0.40%)
Adani Ports 737.50↑10.65(1.47%)
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Asian Paints 3137.40↑9.00(0.29%)
Axis Bank 929.80↑2.85(0.31%)
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Bajaj Auto 4618.50↑2.55(0.06%)
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Coal India 246.10↑4.60(1.90%)
Divi's Lab. 3477.85↓-36.15(-1.03%)
Dr Reddy's Labs 4556.25↑25.30(0.56%)
Eicher Motors 3711.45↑21.10(0.57%)
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H D F C 2690.55↑39.95(1.51%)
HCL Technologies 1126.20↓-13.00(-1.14%)
HDFC Bank 1635.50↑19.70(1.22%)
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Hero Motocorp 2776.90↑31.75(1.16%)
Hind. Unilever 2650.30↓-2.05(-0.08%)
Hindalco Inds. 419.90↑6.35(1.54%)
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Infosys 1314.40↓-3.05(-0.23%)
ITC 449.10↑5.50(1.24%)
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NTPC 176.30↑1.80(1.03%)
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Reliance Industr 2520.60↑14.10(0.56%)
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Sun Pharma.Inds. 968.45↓-1.45(-0.15%)
Tata Consumer 794.25↑4.55(0.58%)
Tata Motors 521.45↑3.00(0.58%)
Tata Steel 108.45↑2.05(1.93%)
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UPL 690.00↑1.90(0.28%)
Wipro 399.80↓-1.90(-0.47%)

Private consumption likely to take a hit on India's IT sector squeeze

In all, listed IT companies accounted for 47 per cent of incremental growth in India Inc's salary and wages bill in the last 12 months

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

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The salary and wage bill of listed IT companies is up 21 per cent year-on-year (YoY) in the TTM period ended December 2022, compared to 13.1 per cent growth for other listed companies on the same account in the Business Standard sample

4 min read Last Updated : Feb 25 2023 | 12:00 AM IST

Private consumption in the country is likely to be affected because of a cutback in fresh hiring and lower pay increments given by domestic IT companies, whose salary bill continues to grow faster than that of the rest of Indian Industry.

Any slowdown in their employee expenses is expected to weigh on income growth in the economy. This can adversely affect demand for big-ticket consumer goods such as cars, high-end mobiles, home appliances, and new homes.

Listed IT companies reported a sharp cutback in net hiring in the third quarter, or October-December (Q3), of FY23 as against the July-September quarter (Q2) and even the corresponding year-ago period. The top five listed of them together added just 1,940 people (on a net basis) to their rolls in Q3FY23, down sharply from 28,836 in Q2FY23 and 61,137 people in Q3FY22.