Infosys going slow on hiring, attrition down: CEO Salil Parekh
Speaking exclusively to CNBC-TV18's Ritu Singh, Parekh said attrition has been coming down in each quarter, helped by various initiatives. For Q4, it is about four points lower than in the previous quarter.
Infosys Chief Executive Officer and Managing Director Salil Parekh on Thursday, April 13, said the company is moderating hiring as it's facing low utilisation. The company posted a 7.8 percent year-on-year rise in consolidated net profit at Rs 6,128 crore in the March quarter.
Infosys’ workforce saw a net reduction of 3,611 employees in the January-March 2023 period from the previous quarter, with its total strength declining to 343,234 by the end of the fiscal, the tech giant’s quarterly financial results showed on April 13.
Speaking exclusively to CNBC-TV18's Ritu Singh, Parekh said attrition has been coming down in each quarter. For Q4, it is about four points lower than the previous quarter. Also, various initiatives are helping the company to reduce attrition.
Talking about clients, he said, "For Q4 there were some clients where we saw ramp downs and then there were some areas where we saw one-time situations. The bulk of the impact in the quarter was from the ramp downs that we saw."
The CEO said the ramp-downs have been with some clients in the telecom, hi-tech, retail, financial services, mortgages, asset management, and investment banking sectors. While Infosys got some stabilisation in those ramp-downs in March, the demand environment is uncertain, he said.
On guidance, Parekh said the company has constructed the guidance based on identifying the large deal and overall wins the company has had in the year as well as the quarter.
Instead of a two-point guidance that Infosys usually gives, the company has given a three-point guidance as the environment is uncertain given what we saw in Q4, Parekh asserted.
"We have a strong financial services business and it's strong in the US for us. We work with a large number of banks but there are fewer conversations on digital transformation, and there are more conversations on cost, efficiency, and on consolidating. We are benefiting from those consolidation discussions," he added.
(Edited by : Shoma Bhattacharjee)
First Published: Apr 13, 2023 8:00 PM IST
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