BENGALURU: A New Era for IT Hiring

In a revealing post-earnings interaction, HCLTech CEO C Vijayakumar shared insights into the evolving landscape of IT hiring. Contrary to traditional growth patterns, Vijayakumar suggested that the addition of new employees may not keep pace with revenue growth. This shift is attributed to increased revenue productivity and a changing onshore-offshore mix, which have collectively driven growth without a proportional increase in headcount.

However, the demand for skilled professionals is on a steady rise, leading to higher billing rates. Vijayakumar emphasized, "The wage bill increase will continue to rise in line with revenue because you need higher-skilled and more experienced people." This statement underscores the industry's pivot towards quality over quantity in its workforce.

Embracing Generative AI

As the IT sector grapples with the implications of generative AI, Vijayakumar offered a message of adaptation and innovation to the developer community. He highlighted the potential for generative AI to not only automate tasks but also create new demand through application modernization. "Embracing generative AI and identifying where incremental value can be added is crucial," he noted.

Furthermore, Vijayakumar pointed out a gradual improvement in the conversion of proof of concepts (PoCs) into revenue, alongside a trend towards shorter contract durations. Despite the reduced tenure periods, the annual contract value remains robust, indicating a healthy demand for IT services.

Looking Ahead

The IT industry stands at a crossroads, with technological advancements and changing market dynamics shaping its future. As companies like HCLTech navigate these changes, the focus on skilled professionals and innovative technologies like generative AI will be key to sustaining growth and competitiveness.