Infosys hired fewer employees in September quarter, fired moonlighters

Infosys' net headcount rose by 10,032 employees while the attrition rate eased to 27.1 percent in the three-month period ended September 30, the tech behemoth announced on Thursday as it released its financial results for the second quarter of 2022-2023 fiscal.

The headcount is down 52 percent from the previous quarter in which it recruited 21,171 people and 13 percent from September 2021 quarter when the company had hired 11,664 employees.

The drop in hiring at Infosys comes at a time when students have been complaining about delayed onboarding process on social media. According to students, IT companies like Wipro, Infosys, TCS and Tech Mahindra have either revoked the offer letters or have stretched it beyond six months.

The attrition rate at Infosys eased/increased to 27.1 percent from 28.4 percent in the last quarter. This comes at a time tech firms are increasingly concerned about an impending recession in the US. Even as they have indicated demand is upbeat from clients but supply, also in terms of quality talent, remains limited.

Infosys Chief Financial Officer Nilanjan Roy, however, said while supply-side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure.

Infosys CEO and MD Salil Parekh added that while concerns around the economic outlook persist, the tech giant's demand pipeline is strong as clients remain confident in its ability to deliver the value they seek, both on the growth and efficiency of their businesses. "This is reflected in our revised revenue guidance of 15-16 percent for FY 23," he added.

Infosys management also commented on the moonlighting trend in IT companies that have been making headlines over the past few months. Parikh said the firm does not support dual employment and has let go of a few employees for moonlighting over the past 12 months. He, however,  did not reveal the exact number.

However, for gig opportunities in the external environment, he said, the company supports employees to look outside with the approval of their managers.