This global IT services provider wants to expand its India team in FY25 — Will Indian peers follow suit?

While TCS and Infosys have hinted at moderation in numbers or no hiring in the current January to March quarter, Noida-headquartered HCLTech not only expects net headcount addition in this quarter but also expects increased hiring in the market given the demand uptick.

Most recently, global software services provider Capgemini told business daily Mint that it plans to hire "in big numbers" in India for fiscal year 2025 (FY25), anticipating a surge in domestic business. Capgemini did not respond to queries sent by CNBC-TV18 on the number of open positions next fiscal.

Capgemini, which currently has 175,000 employees in India, said that the increase in headcount aligns with industry competitors. Does this mean the tide may turn for the Indian tech companies, too?

Krishna Vij, Business Head- TeamLease Digital, told CNBC-TV18 that Capgemini’s plan for FY25 in India has the potential to influence Indian peers to adopt similar strategies.

“While predicting precise figures is challenging, this action may act as a catalyst, inspiring comparable hiring trends among specific competitors. The decisions of other companies to expand their hiring will likely hinge on individual strategies, order book positions, and specific client demands within the dynamic landscape of the IT sector,” she explained.

According to the staffing firm’s data, IT services hiring in India is anticipated to gradually rise in 2024 and potentially accelerate in the second half. This growth will be propelled by factors such as the expansion of domestic business and the widespread adoption of digital technologies. Also, with global uncertainties stabilising, there's an expectation of increased IT spending contributing to heightened hiring.

Meanwhile, Sekhar Garisa, CEO of foundit (previously Monster APAC & ME), highlighted that Global Capability Centers (GCCs) in the Indian IT services sector are currently observing a substantial upswing in recruitment efforts. “2023 marked a remarkable surge with a 145% increase in GCC job opportunities as compared to the statistics recorded in 2021,” he said.

He explained that talent shortage continues to exist and that emerging technologies like Robotic Process Automation (RPA), Cloud Computing, Artificial Intelligence/Machine Learning (AI/ML), Blockchain, Analytics, and Cybersecurity are driving demand for specialised skills.

However, there is pressure to maintain cost-effectiveness in the face of global uncertainties, which also underscores the sector's need for skilled professionals, he said.

“Projections for the year indicate a potential acceleration in the industry around the middle of 2024. However, the growth trajectory for GCC hiring is expected to remain robust throughout the year, with an anticipated 17% increase,” he said.