Infosys, the renowned tech services giant, recently released its financial results for the April-June 2023 quarter, revealing a decline in its headcount for the second consecutive quarter. During this period, 6,940 employees resigned, following a reduction of 3,611 employees in the previous quarter.
Despite the reduction in headcount, the attrition rate at Infosys continued to ease, falling below 20 percent to 17.3 percent for the fourth quarter. This positive trend indicates improved employee retention and stability within the company.
These employee metrics for Infosys align with the trends observed in the IT services sector, with other major players also reporting changes in their headcounts. Wipro and HCL Tech experienced a decline of 8,812 and 2,506 employees, respectively, while Tata Consultancy Services saw an addition of 523 employees. These fluctuations reflect the impact of various factors such as demand fluctuations and organizational restructuring on the IT services industry.
Despite the decline in headcount, Infosys CEO, Salil Parekh, has expressed that the company still maintains a recruitment target for the year, although the final outcome will depend on how the demand environment evolves and the attrition numbers in the coming months.
Parekh also highlighted Infosys’ focus on generative artificial intelligence (AI) projects. The company is actively working on 80 generative AI initiatives for its clients and has developed generative AI tools internally, specifically aimed at software development. Furthermore, 40,000 employees have received training in this area, showcasing Infosys’ commitment to technological advancements that can enhance its capabilities and offerings to clients.
While Infosys is making strides in its technological endeavors, the company also acknowledged that some clients may slow down or halt discretionary work in the short term. This could be due to various factors, including global economic conditions and specific industry challenges.
Over the past eight months, Infosys has witnessed six major top-level departures, starting from October 2022. Among these resignations were Vishal Salvi, the Head of Cyber Security, and Narsimha Rao, the EVP Head of Cloud and Infrastructure. However, despite these departures, Parekh expressed confidence in the company’s ability to nurture and promote talent from within to drive growth and continue producing great leaders.
Regarding wages, Infosys is carefully considering the timing of hikes for its employees. This decision likely comes as the company balances its financial performance with the need to retain and motivate its workforce.
Overall, Infosys’ financial results for the April-June 2023 quarter indicate both challenges and opportunities in the ever-changing IT services industry. The company remains focused on driving technological advancements while managing employee retention and responding to the dynamic market conditions.
